U.K. Consumer and Travel Trade Research Final Report February, 2008 Page 1 Table of Contents FOREWORD.....................................................................................................................5 BACKGROUND ..................................................................................................................... 6 RESEARCH OBJECTIVES ......................................................................................................... 9 METHODOLOGY ................................................................................................................. 13 KEY FINDINGS..............................................................................................................18 SWOT ANALYSIS...........................................................................................................42 THE WAY FORWARD: CONSIDERATIONS.....................................................................46 FINDINGS IN DETAIL ...................................................................................................58 TRAVEL TRENDS ................................................................................................................ 59 Section 1: Section 2: U.K. Economic Outlook............................................................................ 60 Outbound Travel Trends.......................................................................... 65 Section 3: Section 4: Section 5: Section 6: Section 7: Section 8: Section 9: Section 10: Section 11: Section 12: Section 13: Section 14: Section 15: Destination Motivators ............................................................................ 71 Destination Trip Profile............................................................................ 98 Market Segmentation .............................................................................120 Travellers Profile....................................................................................132 The Canadian Opportunity......................................................................137 The Buy Cycle Model..............................................................................145 Regional Opportunities ...........................................................................157 Claimed Barriers to Canada Travel.......................................................177 Media ...............................................................................................179 Trip Planning.....................................................................................186 Environmentally Responsible Destination .............................................191 Consumer Product Idea Forums ..........................................................195 The Travel Trade ...............................................................................230 CONSUMER SURVEYS – QUALITATIVE AND QUANTITATIVE ANALYSES ................................................ 70 APPENDIX...................................................................................................................243 Page 2 List of Exhibits FOREWORD EXHIBIT 1: UK LONG-HAUL TRIPS, 2000 TO 2006............................................................ 6 FOREWORD EXHIBIT 2: CANADA’S SHARE OF THE UK LONG-HAUL MARKET, 2000 TO 2006 ......................... 6 KEY FINDINGS EXHIBIT 1: TRIPS ARRIVING IN CANADA FROM FOREIGN MARKETS 2006 ............................. 19 KEY FINDINGS EXHIBIT 2: UK TRIPS ARRIVING IN CANADA 2000 TO 2006............................................ 20 KEY FINDINGS EXHIBIT 3: LONG-HAUL COUNTRIES VISITED MOST RECENTLY......................................... 21 KEY FINDINGS EXHIBIT 4: BRAND ATTRIBUTE MAP ......................................................................... 26 KEY FINDINGS EXHIBIT 5: CANADA’S STRENGTHS AND WEAKNESSES VS. COMPETITORS ............................ 27 KEY FINDINGS EXHIBIT 6: BUY CYCLE MODEL – HOW IT WORKS ......................................................... 29 KEY FINDINGS EXHIBIT 7: BUY CYCLE MODEL – BOTTLENECKS AND BARRIERS - CANADA .......................... 30 KEY FINDINGS EXHIBIT 8: BUY CYCLE MODEL – PROJECTED MARKET SIZE ............................................ 31 KEY FINDINGS EXHIBIT 9: IDEAL CANADIAN VACATION – BY TARGET SEGMENT ...................................... 35 KEY FINDINGS EXHIBIT 10: CANADA’S CURRENT VISITOR’S PROFILE .................................................... 40 EXHIBIT SECTION 1-1: UK POPULATION BY AGE - 2000 TO 2006 ...................................................... 62 EXHIBIT SECTION 1-2: POUND EXCHANGE RATES 2000 TO 2006....................................................... 63 EXHIBIT SECTION 1-3: UK ECONOMIC INDICATORS TRENDS ............................................................. 64 EXHIBIT SECTION 2-1: UK LONG-HAUL MARKET TRENDS ................................................................ 66 EXHIBIT SECTION 2-2: UK LONG-HAUL TRIPS --- 2000 TO 2006....................................................... 67 EXHIBIT SECTION 2-3: DESTINATION CHANGES 2000 VS. 2006 ........................................................ 68 EXHIBIT SECTION 2-4: UK TRIPS ARRIVING IN CANADA 2000 TO 2006............................................... 69 EXHIBIT SECTION 3-1: ALL COUNTRIES VISITED IN PAST 3 YEARS BY LONG-HAUL TRAVELLERS .................. 72 EXHIBIT SECTION 3-2: LONG-HAUL COUNTRIES VISITED MOST RECENTLY ............................................ 73 EXHIBIT SECTION 3-3: DESTINATION TRENDS – MOST RECENT TRIPS ................................................ 74 EXHIBIT SECTION 3-4: ALL REASONS FOR TRAVEL – BY ALL DESTINATIONS .......................................... 83 EXHIBIT SECTION 3-5: ALL REASONS FOR TRAVEL – BY DESTINATION ................................................. 84 EXHIBIT SECTION 3-6: MAIN PURPOSE OF TRIP – BY ALL DESTINATIONS ............................................. 85 EXHIBIT SECTION 3-7: MAIN PURPOSE OF TRIP – BY DESTINATION .................................................... 86 EXHIBIT SECTION 3-8: ACTIVITIES PARTICIPATED ON TRIP – CULTURALLY ORIENTED – BY ALL DESTINATIONS87 EXHIBIT SECTION 3-9: ACTIVITIES PARTICIPATED ON TRIP – NATURE ORIENTED – BY ALL DESTINATIONS .... 88 EXHIBIT SECTION 3-10: ACTIVITIES PARTICIPATED ON TRIP – CULTURALLY ORIENTED – BY DESTINATION .... 89 EXHIBIT SECTION 3-11: ACTIVITIES PARTICIPATED ON TRIP – NATURE ORIENTED – BY DESTINATION ......... 90 EXHIBIT SECTION 3-12: IMPORTANCE OF ATTRIBUTE IN DESTINATION SELECTION – BY ALL DESTINATIONS ... 91 EXHIBIT SECTION 3-13: CANADA’S STRENGTHS AND WEAKNESSES VS. COMPETITORS .............................. 92 EXHIBIT SECTION 3-14: DESTINATION RATING ............................................................................. 93 EXHIBIT SECTION 3-15: BRAND ATTRIBUTE MAP ........................................................................... 95 EXHIBIT SECTION 4-1: NUMBER OF NIGHTS AWAY FROM HOME – BY ALL DESTINATIONS ......................... 99 EXHIBIT SECTION 4-2: NUMBER OF NIGHTS AWAY FROM HOME – BY DESTINATION .................................100 EXHIBIT SECTION 4-3: INCIDENCE/DURATION OF VISIT IN CANADA/U.S. ...........................................101 EXHIBIT SECTION 4-4: MONTH OF TRAVEL – BY ALL DESTINATIONS ..................................................102 EXHIBIT SECTION 4-5: MONTH OF TRAVEL – BY DESTINATION .........................................................103 EXHIBIT SECTION 4-6: PARTY SIZE AND COMPOSITION – BY ALL DESTINATIONS ...................................104 EXHIBIT SECTION 4-7: PARTY SIZE AND COMPOSITION – BY DESTINATION ..........................................105 EXHIBIT SECTION 4-8: FIT VS. GROUP TRAVEL – BY ALL DESTINATIONS.............................................106 EXHIBIT SECTION 4-9: FIT VS. GROUP – BY DESTINATION ..............................................................107 EXHIBIT SECTION 4-10: FIT PACKAGE COMPONENTS BEYOND AIR AND ACCOMMODATION – BY ALL DESTINATIONS .............................................................................................................108 EXHIBIT SECTION 4-11: FIT PACKAGE COMPONENTS BEYOND AIR AND ACCOMMODATION – BY DESTINATION109 EXHIBIT SECTION 4-12: FIT CAR RENTAL...................................................................................110 EXHIBIT SECTION 4-13: FIT TRIP COMPONENTS BOOKED BEFORE DEPARTURE VS. DURING TRIP ...............111 Page 3 EXHIBIT SECTION 4-14: FIT TRIP COMPONENT BOOKED BEFORE DEPARTURE VS. DURING TRIP – BY DESTINATION ..............................................................................................................112 EXHIBIT SECTION 4-15: TYPE OF ACCOMMODATION – BY ALL DESTINATIONS .......................................114 EXHIBIT SECTION 4-16: TYPE OF ACCOMMODATION – BY DESTINATION ..............................................115 EXHIBIT SECTION 4-17: TRIP EXPENDITURE – BY ALL DESTINATIONS ................................................116 EXHIBIT SECTION 4-18: TRIP EXPENDITURE – BY DESTINATION .......................................................117 EXHIBIT SECTION 4-19: VALUE FOR MONEY ................................................................................118 EXHIBIT SECTION 4-20: LIKELIHOOD TO RECOMMEND DESTINATION TO OTHERS ...................................119 EXHIBIT SECTION 5-1: SIZE OF MARKET SEGMENT ........................................................................121 EXHIBIT SECTION 5-2: SEGMENT CHARACTERISTICS ......................................................................123 EXHIBIT SECTION 5-3: CURRENT PLANS TO VISIT CANADA – BY SEGMENT ...........................................126 EXHIBIT SECTION 5-4: IDEAL TRIP TO CANADA – BY SEGMENT .........................................................128 EXHIBIT SECTION 6-1: NUMBER OF TRIPS TAKEN IN PAST 3 YEARS ....................................................133 EXHIBIT SECTION 6-2: UK LONG-HAUL MARKET PROFILE ................................................................134 EXHIBIT SECTION 7-1: LONG-HAUL DESTINATION PRIORITY ............................................................138 EXHIBIT SECTION 7-2: CANADA’S PRIORITY RANKING KEY SEGMENT ..................................................139 EXHIBIT SECTION 7-3: IDEAL TRIP TO CANADA – BY PROSPECTIVE MARKET .........................................141 EXHIBIT SECTION 8-1: BUY CYCLE MODEL – HOW IT WORKS ............................................................147 EXHIBIT SECTION 8-2: BUY CYCLE MODEL – BOTTLENECKS AND BARRIERS - CANADA .............................153 EXHIBIT SECTION 8-3: BUY CYCLE MODEL – PROJECTED MARKET SIZE ...............................................154 EXHIBIT SECTION 9-1: PLACES VISITED IN CANADA .......................................................................158 EXHIBIT SECTION 9-2: PROVINCES VISITED TRENDS ......................................................................159 EXHIBIT SECTION 9-3: NUMBER OF NIGHTS SPENT IN EACH PROVINCE ...............................................160 EXHIBIT SECTION 9-4: TRIP CHARACTERISTICS – AMONG THOSE WHO VISITED B.C., ALBERTA, ONTARIO AND ATLANTIC ON MOST RECENT CANADIAN TRIP .......................................................................163 EXHIBIT SECTION 9-5: ACTIVITIES PARTICIPATED IN – AMONG THOSE WHO VISITED B.C., ALBERTA, ONTARIO AND ATLANTIC ON MOST RECENT CANADIAN TRIP .................................................................167 EXHIBIT SECTION 9-6: TRAVEL PARTY – AMONG THOSE WHO VISITED B.C., ALBERTA, ONTARIO, AND ATLANTIC ON MOST RECENT CANADIAN TRIPS ...................................................................................170 EXHIBIT SECTION 9-7: TRIP PLANNING – AMONG THOSE WHO VISITED B.C., ALBERTA, ONTARIO, AND ATLANTIC ON MOST RECENT CAR TRIP ...............................................................................173 EXHIBIT SECTION 9-8: PROFILE OF THOSE WHO VISITED B.C., ALBERTA, ONTARIO AND ATLANTIC ON MOST RECENT CANADIAN TRIPS................................................................................................175 EXHIBIT SECTION 10-1: MAJOR BARRIERS TO CANADA TRAVEL .........................................................178 EXHIBIT SECTION 11-1: ALL SOURCE OF INSPIRATION – BY ALL DESTINATIONS ....................................180 EXHIBIT SECTION 11-2: ALL SOURCE OF INSPIRATION – BY DESTINATION ...........................................181 EXHIBIT SECTION 11-3: PRIMARY SOURCE OF INSPIRATION – BY ALL DESTINATIONS .............................182 EXHIBIT SECTION 11-4: PRIMARY SOURCE OF INSPIRATION – BY DESTINATION.....................................183 EXHIBIT SECTION 11-5: SPECIFIC TV TRAVEL SHOW AND OTHER TV SHOWS USED ...............................184 EXHIBIT SECTION 11-6: SPECIFIC WEBSITES USED .......................................................................185 EXHIBIT SECTION 12-1: TRIP PLANNING/BOOKING LEADTIME – BY ALL DESTINATIONS ...........................187 EXHIBIT SECTION 12-2: TRIP PLANNING/BOOKING LEADTIME – BY DESTINATION ..................................188 EXHIBIT SECTION 12-3: HOW TRIP WAS BOOKED – BY ALL DESTINATIONS .........................................189 EXHIBIT SECTION 12-4: HOW TRIP WAS BOOKED – BY DESTINATION ................................................190 EXHIBIT SECTION 13-1: LONG-HAUL TRAVELLER’S ENVIRONMENTAL INVOLVEMENT.................................192 EXHIBIT SECTION 13-2: IMPORTANCE OF DESTINATION'S RECORD ON ENVIRONMENT WHEN CHOOSING TRAVEL DESTINATION ..............................................................................................................193 EXHIBIT SECTION 13-3: DESTINATION RATING ON BEING ENVIRONMENTALLY RESPONSIBLE .....................194 Page 4 Foreword Page 5 Background The UK’s long-haul outbound market has been steadily increasing since 2002, with a sharp increase from 2005 to 2006. Foreword Exhibit 1: UK Long-haul Trips, 2000 to 2006 10,555,716 6,340,762 2000 6,073,310 5,732,821 2001 5,894,550 2002 6,554,629 2003 7,145,340 2004 2005 2006 Source: EuroStat In terms of share, Canada has been commanded a fairly steady 12 to 13% of the long-haul market during this period, with a drop to only 8% in 2006. Overall, while the UK is shifting away from the U.S. as a destination, it has not been rejecting Canada. Foreword Exhibit 2: Canada’s Share of the UK Long-haul Market, 2000 to 2006 13.6% 13.6% 12.6% 11.7% 12.2% 12.5% 8.0% 2000 2001 2002 2003 2004 2005 2006 Source: Statistics Canada Page 6 Background The research was designed to meet the business goals of the Canadian Tourism Commission (CTC), Tourism British Columbia, Ontario Tourism Marketing Partnership, Alberta Tourism, Parks, Recreation and Culture, Travel Manitoba, Atlantic Canada Opportunities Agency, and Government of Yukon, Tourism and Culture (hereinafter the “Partners”). This research must determine: What is causing the slide in travel to Canada What are the issues retarding growth How they need to be addressed What strategic action the Partners must take in order to steer the decline and capitalize on the enormous latent demand. Failure to respond quickly and effectively to the decline in tourism could result in continued deterioration in visitors to Canada and ultimately undermine the Partners’ ROI. The specific business goals, can be summarized as follows: 1. To understand why tourism to Canada has not grown faster. • Is it an awareness issue, an attitudinal issue or both? • Are sentiments toward other destinations at play (including the U.S.)? 2. To design the most effective advertising and marketing communication to reach the potential markets. • What are the triggers stimulating travel to Canada – current and potential? • How can they best be integrated into Canadian travel advertising? • From a media planning perspective, the ideal timing (season and lead time)? Page 7 Background 3. To make use of the most effective communication channels to reach the target market. • The internet • Advertising vehicles • Trade – agents/wholesalers • Other channels 4. To provide direction and assistance for the travel trade to accelerate the growth of pleasure travel to Canada. 5. To identify the target segments for travel to Canada. • Motivational/product segments • Demographic segments 6. To create market-sensitive product packages. • Most appropriate activity/interest focus • Most effective price points • Best packaging components (the correct type of accommodation, duration, ground activities, etc) Page 8 Research Objectives The research was focussed on 8 primary areas: a) Defining the Target Market Insignia successfully generated product/motivational segments in Japan, South Korea, Australia and India some of which became prime targets, yet cut across the age spectrum. The same successful methodology was applied to the UK market. Aside from general target segments, there may be important niche markets that specific provinces and/or territories should be going after. What is the size of the potential market for Canada overall and for each of the partners? b) Global Segmentation How do travellers define or segment global destinations? Do they cluster destinations in a way that helps us understand the destination decision process? In Asia/Pacific, destinations are clustered by region – Asia, Europe, North America. Each region has an overall personality and that analysis helps to sort and clarify the multitude of individual global destinations that exist. What are the primary motivators to those regions? What kinds of people/trips do they attract? What activities/benefits are satisfied by each? What cultural factors figure into the equation? Page 9 Research Objectives c) Pinpointing The Triggers For Canada What is unique about Canada? What appeals to prospects? What has successfully triggered past visitors? What kinds of vacations hold the best potential – again not only for Canada generally, but for each of the partners as well? Are these products FIT? Group? Can they be packaged? How should they be priced? d) What Are The Barriers To Visiting Canada Are there lingering political, social and/or health concerns undermining travel to Canada? Is lack of awareness, knowledge, relevant product at play? Negative sentiment toward the U.S.? The real challenge here is determining how to unlock the incredible latent demand for Canada in the UK market. The gulf that stands between that pinnacle and Canada’s current visitor draw is immense and must be understood. In a later section Insignia explores in-depth the destination consideration process and elaborates on the best approach to clarifying the issues. Page 10 Research Objectives e) Positioning Canada Effectively In a highly competitive marketplace Canada must be positioned effectively in order to strike a positive chord, a point of difference and to trigger an interest in travel. How should “Brand Canada” best be presented in the UK market? What is the driving brand relationship that will cause consumers to have a vested interest? Future advertising depends on this analysis to be effective. f) Product Opportunities It is essential to get down to the nuts and bolts of marketing and pinpoint the types of specific products or packages that should be in place to appeal to each European country and to each identified target market. Recent research by Insignia for the Partners in the U.K. and Germany revealed the significant differences in product needs by each market. For example, Germans are eager to immerse themselves in Canada’s outdoors and soft adventure. Brits are much happier with one foot out in nature and the other foot firmly planted in the security and familiarity of urban amenities and social interaction. Included in this analysis should be the perceptions of existing packages available to Canada – general knowledge, price, appropriateness. What can we learn from appealing competitive packages? g) Planning/Booking Process The research must clarify: Timing Sources of inspiration for destination choices Media influences Information resources (including the internet) Booking process Page 11 Research Objectives h) Travel Trade Both retailers and tour operators/wholesalers can have a profound influence in where people travel. It is essential that they are on side: Bringing the right products to market Promoting them effectively with backup knowledge The research must explore their awareness, perceptions, motivation and product lineup. How to get them up to speed and onside is essential. Page 12 Methodology Phase One: Review of Existing Data An examination of existing available data on UK travel patterns and economics was conducted in order to provide context for the findings of the original research. Information of particular relevance to the existing research included: • • • • • • • Economic performance Consumer Confidence Disposable Income Long-haul trips, 2000 to 2006 Destination patterns of long-haul travellers Domestic Travellers, 2000 to 2006 Value of the British pounds vs. the currencies of major destinations Phase Two: U.K. Long-haul traveller Focus Groups In order to gather grassroots insights to shape the quantitative survey, as well as to give context to its results, focus groups were conducted among U.K. travellers. Six groups (recruit 8 for 6 per group) were conducted in London. All participants had either travelled internationally in the past 3 years or had plans to travel internationally in the next 2 years. Four of the groups included those who had not yet travelled to Canada, but were not rejecters of Canada. These groups were split among gender and age, with two of the groups being male and the other two female, and two being younger (30 to 49) and two being older (50 to 69). The two remaining groups were those who had visited Canada in the past 3 years. These groups were made up of a mix of males and females, but the groups were split by age, with one being younger (30 to 49) and one being older (50 to 69). The discussion guide is included in the appendix of this report. Page 13 Methodology London Male Female Mixed Younger 30 - 49 Have not travelled to Canada Have not travelled to Canada Have travelled to Canada in past 3 years Older 50 - 69 Have not travelled to Canada Have not travelled to Canada Have travelled to Canada in past 3 years Phase Three: In-depth Interviews with the Travel Trade As a great deal of the Partners’ activities in the United Kingdom relate to the travel trade, a series of in depth interviews were conducted among the trade to gain a more complete picture of the travel market in the U.K. The interviews lasted, on average, between 30 and 45 minutes. A discussion guide is included in the appendix of this report. Fifteen interviews in total were conducted, with the following breakdown: • • • 8 Interviews with Tour Operators/Wholesalers 6 Interviews with Travel Agents/Retailers 1 Interview with Canadian representatives in the U.K. In addition, 5 interviews were conducted with Canadian Receptives in Canada who deal with the U.K. market. Phase Four: Consumer Quantitative Survey A national online panel operated by OpenVenue was conducted with 2,697 British long-haul travellers aged 18 and older from October 20 to November 15, 2007. Page 14 Methodology Respondents met the following criteria: • • Travelled outside of European Union countries, North Africa and the Mediterranean for 3 nights or more with at least 1 night in paid accommodation for pleasure or personal reasons, to visit friends and relatives or a trip that combined business and pleasure in the past 3 years, or Planned to take a pleasure trip outside of European Union countries, North Africa and the Mediterranean for 3 nights or more with at least 1 night in paid accommodation in the next 2 years. An oversample was implemented to reach n=884 past travellers to Canada. This was achieved by screening the main panel fully for qualifying past Canadian travellers. The oversample of past travellers to Canada was then weighted down to the level in the cross-section survey. The following chart shows regional destination of the 884 past travellers to Canada. B.C. Alberta Saskatchewan Manitoba Ontario Quebec Atlantic Yukon Northwest Territories Nunavut n=401 n=281 n=50 n=45 n=490 n=215 n=102 n=40 n=30 n=18 The average duration of interview was 20 minutes. Detailed tables are available in a separate file. The questionnaire is appended for reference. The average error range with a sample of 2,697 is ± 1.9%. This means that in 19 out of 20 cases, the results based on a sample of 2,697 will differ by no more than 1.9% from what would have been obtained by interviewing all consumers who meet the qualification criteria in the markets surveyed. Page 15 Methodology Omnibus Survey In addition to the online survey, a telephone omnibus survey was conducted among 949 British adults aged 18+ across the nation to obtain incidence and profile data of the past and future pleasure trip travellers. This provided a base from which to weight the online survey as required. In this case, an age weight was applied to the online sample to reflect a more accurate distribution of past/future travellers among each age group. Phase Five: Regional Products Innovation Online Forums Two 5-day forums (recruit 12 for 10 per forum) were conducted with past and prospective Canada travellers to evaluate specific tourism products from each partnered province. All participants had either travelled internationally in the past 3 years or had plans to travel internationally in the next 2 years. These groups were made up of a mix of males and females, age 30-69 with a mix of life stages (e.g., families with children 8 to 18 and households with no children). One of the forums was among those who had visited Canada in the past 3 years, and claimed that their last trip to Canada was very enjoyable. All participants must not have stayed or spent more than 50% of their trip with friends or relatives. At least 4 participants must have visited Western Canada and 4 visited Central/Eastern Canada. The other forum was with those who had not yet travelled to Canada, but are seriously planning to visit Canada in the next 2 years. They must be planning to stay in a paid accommodation for at least 50% of their trip and likely to spend at least half of their trip away from friends or relatives. At least 4 participants must be seriously considering visiting Western Canada and 4 Central/Eastern Canada. Page 16 Results The findings of the study are presented under four main headings: • • • • Key Findings Marketing Considerations Findings in Detail Appendix Throughout the report, circles (= Ç) and squares (= È) have been used to highlight meaningful differences. Page 17 Key Findings Page 18 Key Findings U.K. A Key Market • The UK continues to be the most important foreign market for Canada, among the CTC’s target countries in terms of trips arriving in Canada. Key Findings Exhibit 1: Trips arriving in Canada from foreign markets 2006 Arrivals to Canada (2006) 842,000 U.K. Japan 364,000 France 361,000 Germany 298,000 Mexico 202,000 South Korea 189,000 Australia 178,000 China 139,000 Source: Statistics Canada Page 19 Key Findings Trends to Canada Tourism arrivals from the UK have regained their previous 2000/2001 levels, after plummeting in 2002/2003 due to the general unease with long-haul air travel that the 9/11 terrorist attacks caused. January to September, 2007 registers a positive 4.4% increase. Key Findings Exhibit 2: UK trips arriving in Canada 2000 to 2006 Arrivals in Canada 862,000 888,000 826,000 801,000 842,000 721,000 691,000 2000 2001 2002 2003 2004 2005 2006 Source: Statistics Canada Page 20 Key Findings Canada in Perspective Canada captures 8% of long-haul trips (based on most recent trip data), similar to Australia (8%). The prime destinations are the U.S. (38%) and Asia (20%), followed by the Middle East (12%), the Pacific (11%), and the Caribbean (10%). Key Findings Exhibit 3: Long-Haul Countries visited Most Recently Long-Haul Destination on Last Trip North America 44% Asia (20%) Russia 2% China 2% Canada 8% Caribbean 10% Japan 1% Turkey 6% United States 38% Middle East (12%) Hong Kong 3% Dubai 4% Thailand 5% Mexico 3% Singapore 4% India 5% Brazil 2% South/Central America (6%) Malaysia 3% South Africa 4% Australia 8% Africa (6%) Pacific (11%) New Zealand 4% Page 21 Key Findings The Desired Canadian Experience Canada is naturally high on the priority list for U.K. travellers for a number of fundamental heritage reasons: 1. Canada is part of the Commonwealth 2. It is English speaking 3. Many friends and relatives live in Canada These strengths are shared with Australia, New Zealand, certain Caribbean countries and, with the exception of the Commonwealth connection, the U.S. All of these destinations, then, represent significant competitors. The relatively unique selling points for Canada, beyond the heritage connection, include: • Beautiful nature scenery • Friendly, hospitable people • The opportunity to experience local culture • Much easier to get to than alternatives like Australia Page 22 Key Findings The Barriers To Canada The main barrier to travel to Canada is that its image is too singularly nature. U.K. travellers are highly social, they enjoy urban amenities, socializing with friends in a relaxing atmosphere, good food, good accommodation, some measure of entertainment and local culture. The holiday concept prospective visitors typically have of Canada is an outdoor, nature viewing trip that lacks the urban side of the equation. Their trip concept is not properly balanced. The vastness of Canada is also intimidating. As they expressed: “Tell us what there is to do” “When we think of Australia we think of great diversity of things to do. But, we don’t know about Canada” “What do you do in-between the cities? How far apart are they”? “Canada is so vast, I didn’t know where to start” (putting a doable vacation concept together) “If you have kids, that’s death” (vastness) “What’s missing is excitement, art, culture, places of interest” “East competes with West – how do I make a choice”? While nature is a core appeal, Brits also find it intimidating. For example, most have never been in or ever seen a kayak up close. Also, there is an awareness of bears in Canada which automatically implies that one must be careful in nature. Page 23 Key Findings Clearly, to provide a more balanced vacation concept, Canada needs to market its nature in combination with urban amenities, both of which can be experienced in the same area, almost on the same day. In other words, an opportunity to experience unique, grand nature but at the same time retreat to a comfortable environment with good food, quality accommodations and relaxed socializing with friends. On other days travellers can experience unique Canadian culture activities. One of the higher order benefits of a visit to Canada is to feel the balance between the civility of Canadian cities in such close proximity and in harmony with an authentic, untouched (in European terms) natural environment. Page 24 Key Findings Canada’s Image vs. Competitors The Correspondence Analysis on the next page correlates destination imagery ratings on two computer driven axes: Culture Exotic Discoveries New World Adventure Nature Each of the attributes is plotted on the map with the positioning of each destination. The map, through multivariate analysis, illustrates the relative position of each destination and each attribute, based on their ratings on each. In other words, the more a particular destination is uniquely associated with an attribute the closer it is charted to it. Brand Positioning Australia Alone in the Southeast Quadrant, Australia aligns with relaxation, healthy lifestyle, with an element of exoticism from aboriginal culture. U.S.A This country dominates the Northwest sector and is strongly associated with modern, urban culture, luxury and a wide variety of activities. S.E. Asia In the Northeast quadrant, SE Asia is associated with sun, beaches and different cuisines. Canada Clearly entrenched in the Southwest sector, Canada aligns with the outdoors— active, spacious, clean, as well as a very safe environment. Its positioning well away from cultural activities and an exciting environment reinforces the weaknesses of the country’s image discussed earlier. The strength of its nature is critical because of its importance to UK travellers, but the product concept is not balanced appropriately. Page 25 Key Findings Key Findings Exhibit 4: Brand Attribute Map Perceptual Brand/Attribute Map Culture Different cuisines Theatres, clubs or shows USA Luxury Modern culture Museums/galleries See much as possible Local supermarket Skiing/snowboarding Wide selection activities Group tour Exciting environment What I learned in school SE Asia How locals live Travel stories Meet locals Friends love to see Family together Getting away/escape Home of resident Sunbathing/beach Canada Roughing it Secure/safe Healthy lifestyle Relaxing Active outdoor sports Clean, healthy Modern + Nature Surrounded by nature Seeing wildlife Unspoiled nature Spacious outdoors Australia Aboriginal culture Nature Page 26 Exotic Discoveries New World Adventures Unique accomodation Historical attractions Key Findings Canada’s Strengths & Weaknesses Canada’s image clearly illustrates how it is well ahead of competitors in providing a natural environment, but dramatically lags in offering other benefits many consider vacation essentials. Key Findings Exhibit 5: Canada’s Strengths and Weaknesses vs. Competitors Canada’s Strengths • • • • • Vs. U.S. Surrounded by beautiful, unspoiled nature Experiencing unspoiled nature Being in a clean, healthy environment Seeing wildlife in nature Attracts more historical sightseeing and experiencing communities • • Vs. Australia Enjoying Alpine (downhill) skiing or snowboarding Rivers, waterfalls, autumn leaves, and glaciers • • • • • • • Canada’s Weaknesses • • • • • Summary • • • Attending theatre, clubs, shows Sunbathing/beach activities Experiencing a modern culture Staying at luxury surroundings Visiting museums or art galleries • Canada is way ahead in terms of a natural experience Also, Canadian history and way of life is more appealing But the U.S. provides more entertainment and luxury city stays • • • • • • Experiencing aboriginal culture Sunbathing or other beach activities Roughing it Wine/cultural tours Observing wildlife Visiting hot springs • Except on a very few dimensions Canada’s image is very similar to Australia’s. Canada is ahead on skiing, Australia on aboriginal attractions, beach and roughing it • • • • Vs. South East Asia Being in a clean, healthy environment Participating in active outdoor sports Experiencing a wide, spacious outdoor environment Feeling secure and safe Enjoying the convenience of the modern world while experiencing nature Surrounded by beautiful, unspoiled nature Seeing wildlife in nature Opportunity to try different cuisines Sunbathing or other beach activities Experiencing local life in one area Canada is far ahead in experiencing a natural environment. S.E. Asia offers sun and exotic cuisine. Page 27 Key Findings The Buy Cycle Model a) • How it Works The Buy Cycle Model was developed by Insignia during three separate tourism studies in China, Taiwan and South Korea examining in a real life environment the step by step planning process. The Buy Cycle was then subsequently evaluated in 18 focus groups in Europe--the U.K., France and Germany. Those discussions further validated that this is the way people think. Finally, Insignia built a quantitative question into the 3 studies to measure where people are on the Buy Cycle path and where the barriers are. The findings confirm the focus group learning and direct us toward the importance of helping prospects build their own "movie". Page 28 Key Findings The Buy Cycle Model a) • How it Works The model is described below: Key Findings Exhibit 6: Buy Cycle Model – how it works Step1—AWARE: You first hear about the destination—often in school. Step 2—ON DREAM LIST: It becomes a destination that you dream about going to some day in the future, not necessarily in the immediate future. Step 3—ON SERIOU.S.LY CONSIDERING LIST: Seriously considering in next 2 years. Step 4—CREATING A “VACATION MOVIE”: Started to gather information about Canada from various sources – friends, the internet, articles, brochures. This is where you really start your serious investigation. Trying to get an idea of specifically what you would be doing during the day, in the evening, whether there will be enough to do, reassuring yourself that this will be a truly memorable experience. In short, creating a movie in your head. Step 5—DETAILED ITINERARY PLANNING: Currently planning the details of my itinerary to Canada. Step 6—FINALIZING FLIGHT/LAND ARRANGEMENTS: • Step 7—PURCHASE: In the process of working out the details of flight and land arrangements to Canada. The prospect has already booked. Page 29 Key Findings The Buy Cycle Model b) Bottlenecks and Barriers – Canada • The chart below illustrates how far the long-haul travel market in the U.K. has advanced along the Buy Cycle path for a trip to Canada. Key Findings Exhibit 7: Buy Cycle Model – Bottlenecks and Barriers - Canada Step1—AWARE: 100% Undoubtedly, virtually all will have heard of Canada. Step 2—ON DREAM LIST: 96% Virtually all British dream about visiting Canada some day. Step 3—ON SERIOU.S.LY CONSIDERING LIST: 44% Step 4—CREATING A “VACATION MOVIE”: 16% Step 5—DETAILED ITINERARY PLANNING: 4% Step 6—FINALIZING FLIGHT/LAND ARRANGEMENTS: 1% Step 7—PURCHASE: 1% Still a very large prospect base – over 4 in 10 claiming to be seriously considering Canada in the next 2 years. Here is the major bottleneck. Only 16% have advanced to the stage of researching a Canadian trip – creating their personal vacation “movie”. As many as 28% are “stuck” at the serious consider stage. These prospects have now moved to the detailed itinerary stage. Í These will likely follow through. These will likely follow through A small percentage in comparison to the potential at stages 2 and 3. Page 30 Key Findings The Buy Cycle Model c) Projected Market Size • There are 27.5 million potential long-haul travellers in the U.K. out of a population of 47,634,000 age 18 and over. Key Findings Exhibit 8: Buy Cycle Model – Projected Market Size Step1—AWARE: 27,485,000 Assumes all have heard of Canada. Step 2—ON DREAM LIST: 26,304,000 Almost all British long-haul travellers dream about visiting Canada. Step 3—ON SERIOU.S.LY CONSIDERING LIST: 12,109,000 As many as 12.1 million are at the seriously consider stage for the next 2 years. Step 4—CREATING A “VACATION MOVIE”: 4,421,000 A full 7.7 million have not advanced to Stage 4 – a huge blockage. Step 5—DETAILED ITINERARY PLANNING: 1,002,000 These individuals have advanced and will likely follow through. Step 6—FINALIZING FLIGHT/LAND ARRANGEMENTS: Step 7—PURCHASE: 357,000 206,000 These individuals will likely follow through. Booked at time of survey. Page 31 Key Findings The Buy Cycle Model Implications The Partners need to focus more on Stage 4 – helping serious prospects create their personal Canadian vacation movie, rather than building initial awareness, (Stage 1), getting Canada on the Dream List (Stage 2) or even on the Serious Consider List (Stage 3). Access to Detail To create a “movie”, prospects need access to detail – especially itinerary ideas. • Given the importance of the internet they must be strongly encouraged to visit the most appropriate Canadian websites. • Once on these sites they need help in creating itinerary ideas. • Then, to elaborate on key attractions and locations on route, short video clips can work very effectively, as well as any other descriptive material that will aid the prospect in visualizing him/herself in the scene having a wonderful time. • Blogs from past visitors are also welcome, as long as they are trustworthy as legitimate experiences by real travellers. Viral Marketing • Friends, especially previous visitors or residents are so highly influential that the Partners need to seriously explore viral marketing ideas. • Ways must be developed to encourage friends or past visitors to “spread the word”. Itinerary Ideas • One of the reasons agent/operator brochures are popular sources of “movie” planning is because they provide itinerary ideas and help the prospects get their heads around their personal vacation concept. Consequently, advertising can focus on promising “brilliant” itinerary ideas on the Partners’ websites. Page 32 Key Findings The Buy Cycle Model Fighting Procrastination • Facilitating personal “movie” creation helps the prospective visitor to stimulate themselves and drive them toward moving on their dream. • However, industry advertising for low cost flights also helps to communicate viability (“Canada seems so much closer when the fare is so low”), as do ads featuring time specific special events. • Procrastination is Canada’s worst enemy. Helping prospective visitors generate their own excitement is the best route to stimulating near term travel. Page 33 Key Findings Assisted by grassroots learning from the preliminary focus groups, a multidimensional rating question was created for the quantitative survey. Five segments emerged. Resort-Style (23%) This segment is family vacation oriented and wanting a wide selection of activities, particularly sun and beach. Culture Seekers (22%) Observing the country’s unique culture is a dominant interest here—especially museums, galleries, historical sites, entertainment and nightlife and local cuisine. Relaxation (21%) Rest and Relaxation is the common bond here. Nature Viewing (21%) Being in a clean, healthy and spacious environment, surrounded by beautiful nature and observing wildlife, but all within reach from an urban environment appeals to this group Nature Participation (13%) This group is not satisfied with visual stimuli. They want to get involved. Soft adventure prevails. Canada’s Prime Targets 1. Nature Viewing (21%) 2. Nature Participation (13%) 3. Culture Seekers (22%) Page 34 Key Findings The ideal Canadian vacation and each prime target’s profile are described below: Key Findings Exhibit 9: Ideal Canadian Vacation – by Target Segment Ideal Canadian Vacation Target Segment Nature Viewing Nature Participation Culture Seekers Season of travel • April to September • April to September • April to September Multi-country visit • Only 44% would include U.S. • Only 46% would include U.S. • Only 48% would include U.S. Duration in Canada • 2 weeks • 2 weeks • 2 weeks Fully Independent Travel (FIT) • Majority 85% – package: 29%, nonpackage: 56% • Majority 86% – package: 28%, non package: 58% • Majority 83% – package: 27%, non package: 56% Preferred regions • B.C., Ontario— Quebec, Alberta and Atlantic also appealing • B.C., Ontario— Quebec, Alberta, Nova Scotia, Newfoundland/ Labrador and Territories also appealing • B.C.,Ontario, and Quebec Preferred accommodation • Resorts close to nature(mountain, lakeside),as well as authentic cabins or lodges. • Resorts (mountain, • City hotels and lakeside), city resorts (mountain, hotels relatively low lakeside). on their preferred list. Page 35 Key Findings Ideal Canadian Vacation Target Segment Nature Viewing Preferred activities • They want a wide and varied nature viewing experience. • Viewing rivers or waterfalls. • Viewing mountains • Viewing wilderness and observing wildlife. Nature Participation Culture Seekers • As a younger group, these • They want to see individuals share particular the Canadian interest in outdoor activity. culture — taking city tours, seeing • Trail riding, old architecture, canoeing/kayaking, museum and art cycling, dog sledding, galleries as well snowmobiling, heli/cat as getting to skiing as well as traditional know local skiing and snowboarding. inhabitants. Segment Profile Gender Male 50 58 45 Female 50 42 55 18 to 29 11 35 13 30 to 39 16 22 20 40 to 49 22 18 18 50+ 51 25 49 Age Page 36 Key Findings Influential Media For the British, friends and relatives are the primary source of inspiration to visit Canada (for 49% of recent visitors). The internet used more for a planning and booking tool, is the prime source of inspiration for only 5%. Given the strong heritage connection with Canada (58% have friends and/or relatives living there) and the sociability of British travellers, the word of mouth influence is not surprising. What it does is remind marketers of the importance of developing viral marketing programmes. Also, it points to the opportunity to build in the “voice” of a local friend or relative into advertising – for example: “Come on over. You won’t believe this place” In the case of Australia, an even higher 64% of recent trips were inspired by friends and/or relatives. It is not surprising then that Australia adopted the theme in its recent advertising: “Where the Bloody Hell Are You”. In addition to communicating friendliness and hospitality (so important to British travellers and believable for Australians), it also mimics what a friend or relative living there might say. Trip Planning The British plan their Canadian trips 8 months in advance and book them 5 months in advance of travel. Only 44% book through a travel agent. Most trips to Canada are booked direct – to an airline (47%) and/or a hotel (23%) Regardless of the ultimate retailer, as many as 63% of bookings to Canada are now made online. Page 37 Key Findings The Travel Trade The key piece of learning from the UK travel trade interviews is that, according to agents, virtually all prospective visitors to Canada that contact them have already made up their mind to visit Canada prior to engaging them. In other words, while the agent may be influential in choosing the specific itinerary within Canada, they are not driving the decision to choose Canada. The internet is the new powerful influencer in this behavioural shift. Consumers are now empowered with a source of knowledge that they never had before. The implication for the Partners is that the travel trade becomes less important as a route to driving travel to Canada. The focus must now shift even more to promoting Canada direct to the consumer—especially via the net. On the product side. Agents strongly agree that there is not enough new product on the market for Canada, yet there are endless opportunities to expand the product offering— the countless interesting and unique experiences beyond the well known attractions (e.g. The Rockies, The Rocky Mountaineer train, Niagara Falls, Vancouver, Toronto, etc). These include unique nature based attractions as well as urban focused. Receptives confirm that clients are looking for more experiential product today. However, one of the major barriers to broadening the product offering lies with the operators who are reluctant to experiment with new packages unless there is proven demand in advance. Traditionally, with product distribution, the consumer purchased what the travel agent offered which, in most cases, was what the tour operators put together in their brochures. The narrowness of their offering restricts consumer appeal because many of the most exciting vacation ideas never make it to market. Receptives confirm that they have plenty of ideas, but there is real resistant by operators to pick up those product ideas. Page 38 Key Findings The Travel Trade 1. The trend now is toward the consumer going directly to the internet (among other sources like past visitors) for ideas, less reliant on tour operator offerings. 2. This reinforces how important it is for the Partners to develop their websites and ensure that the right kind of product is available on the internet. Page 39 Key Findings Canada’s Current Visitor The profile of Canada’s current visitors from U.K. is outline below. Key Findings Exhibit 10: Canada’s Current Visitor’s Profile Multi-country visits • 70% Canada only. In combo with U.S.-30% Trip Duration (average) • Average nights on trip: 18, average in Canada:13 Season • May to September Party Composition • With spouse (62%), alone (16%), with children (only 17%) • Average party size: 3.1 persons FIT • Mostly FIT (87%) Top Five Activities in Canada • Viewing rivers or waterfalls • Visiting places of historical interest • Visiting small towns • Viewing mountains • Taking city tours • VFR • Enjoying natural scenery, local culture • Home of friend or relative (only 33% in spite of 58% having close contacts in Canada) • City hotels (broad price range) • £ 3,300 per trip • London, Southeast and Scotland key markets • 43% under 40, 41% 50+ • 58% close friends/relatives in Canada Purpose of Trip Accommodation Expenditure (average) Profile Page 40 Key Findings U.K. Travel Market Trends to Canada —1997 to 2007 The following are key trends that have developed in the UK market for Canada over the past ten years. 1. Potential Long-haul market Grows Dramatically • From 13.5 million potential long-haul travellers in 1997 to 27.5 million in 2007. • More Brits are both interested in and have taken long-haul trips. 2. Canada Maturing as a Pleasure Destination beyond VFR • In 1997, 47% travelled to Canada mainly to visit friends or relatives. This has now dropped to 32%. • Staying with friends/relatives has declined from 61% to 33%. • In 1997, 74% of visitors had close friends or relatives in Canada. Now, it is still high but down to 58%. 3. British Travellers Are Younger • The average age in 1997 was 51 years old, now down to 44 years old, for Canadian visitors. 4. Western Canada Growing in Appeal • B.C. and Alberta now attract 44% and 31% of U.K. visits, respectively, up from 29% and 22% in 1997. 5. Travel Agents Losing their Influence • In 1997, 73% stated that travel agents were influential in their choosing Canada. • In 2007, only 4% said that travel agents had any role in their visiting Canada. 6. Internet Now Dominating Booking Process • In 1997, the Internet was in its infancy. In 2007, as many as 63% of trips to Canada were booked on-line—42% direct with an airline. Page 41 SWOT Analysis Page 42 SWOT Analysis Strengths • The U.K. economy remains healthy. • The outbound travel market has been growing annually since 2002. • Canadian arrivals are showing signs of recovery (January to September, 2007 at +4.4%). • Canada ranks as high as third as a dream destination. • Canada is part of the Commonwealth. • The majority of Canadians speak English. • As many as 58% of all British long-haul travellers have close friends or relatives in Canada. • Canada’s nature is highly appealing. • A clean, healthy environment. • Opportunity to see wildlife in nature. • The Eastern Canada is a relatively short flight. • The British are prepared to focus on one region, not trying to see the whole country on one trip (as do many Asians). • Canada has a wide choice of historical and cultural attractions that would interest U.K. travellers (if they were aware of them). • Excellent skiing and other soft adventure. • The opportunity to personally connect with nature. • Canada has a high value for money rating. • The Rocky Mountaineer train (very popular). • Solid interest in both Western Canada and Eastern Canada. Page 43 SWOT Analysis Strengths • Canada is considered welcoming and friendly to U.K. travellers. • In the same geographical area, being able to experience the conveniences of the modern world while experiencing nature. • Canada is a very popular long-haul destination. • Nine out of ten recent travellers to Canada would recommend it to others. • Canada has an excellent environmentally responsible rating, although it is not a destination motivator. Weaknesses • Canada is so vast it can intimidate those without a clear view of a future itinerary. • Canada is cold in winter. • Many believe there is an absence of cultural attractions. • Prospects do not have a clear vision of a balanced Canadian vacation (nature plus culture and urban). • Distance is often perceived as greater than reality. • Existing brochures focuses too much on scenery and not enough people, culture, socializing and a sense of fun. • The U.S. provides a much greater array of cultural activities and excitement – shopping, night life and entertainment. • Existing packages are too narrow and limited to traditional product. • Nature can be intimidating (especially the fear of encountering bears). • Enormous latent demand (12.1 million British are seriously considering a Canadian trip in the next 2 years. Only 1.0 million have advanced to the itinerary planning stage). The CTC’s current budget may be too low to effectively stimulate this demand. Page 44 SWOT Analysis Opportunities • Positioning Canada as a broader experience than just nature – including urban activities, cultural experiences. • Building on warm, hospitable, friendly people image. • Leverage the friends and relatives connection. • Provide FIT travellers with add-on itinerary ideas. • Sell Toronto as alternative to NYC for pre-Christmas shopping. • Promoting Canada as a family destination – educational nature based experiences, ranch/farm stays, etc. • The Partners need to work more closely together to create synergy (trade). • Focus on the unique attractions in Atlantic Canada and how close it is. • Assist the 12.1 million British seriously considering Canada in the next 2 years to create their own vacation “movie” and advance through the Buy Cycle. • Improvements to the official websites to assist vacation planning. • Ensure high placement of CTC/partner sites on the dominant word search engines. • More itinerary ideas for the dominant FIT traveller. • The prospective British visitors typically want to focus on specific regions of Canada, so provide regional itineraries. • Provide films for television travel shows, an influential medium. • Providing more trip modules (i.e. add-on vacations) which are growing in popularity among FIT travellers. Threats • The strengthening of the Pound against the American dollar may encourage greater British travel to that country. • As the travel trade becomes less influential in the decision to travel to Canada (due largely to the internet’s influence), the ROI of CTC funds directed to the trade may diminish. Page 45 The Way Forward: Considerations Page 46 The Way Forward: Considerations There are 8 key areas that the Partners should focus on to accelerate market growth within the UK. 1. Reposition The Canadian Brand to Broaden Appeal 2. Positioning Pitfalls To Avoid 3. Break The Buy Cycle Bottleneck 4. Enhance User Friendly Websites 5. Campaign Needed To Drive Prospects to the Websites 6. Influential Media 7. Trade Support 8. New Product Must Be Brought To Market Page 47 The Way Forward: Considerations 1. Reposition The Canadian Brand To Broaden Appeal The Appeal of Canada Three underlying reasons why travel from the U.K. Market to Canada is well developed: Predominantly English speaking Reasonable close (vis-à-vis Australia, New Zealand) One in four long-haul travellers (7.8 million to be precise) have close friends and relatives in Canada. Primary physical attraction Canada’s natural beauty (Rockies, Niagara Falls) Secondary attractions Experiencing unique Canadian culture Meeting friendly, hospitable people Experiencing Canadian cities Barriers to Canada Canada’s image is too nature focused. The British are intimidated by extreme nature, remoteness and vastness. Most have never been in or ever seen a kayak up close. There is an awareness of bears in Canada which automatically implies that one must be careful in nature. They want a vacation that balances nature experiences with urban comforts. The current limited vision of a Canadian vacation is an outdoor nature viewing trip that lacks the urban side of the equation. Page 48 The Way Forward: Considerations Their trip concept is not properly balanced. “Tell us what there is to do” “When we think of Australia we think of great diversity of things to do. But, we don’t know about Canada” “What do you do in-between the cities? How far apart are they”? “Canada is so vast, I didn’t know where to start” (i.e. putting a doable vacation concept together) “What’s missing is excitement, art, culture, places of interest” “East competes with West – how do I make a choice”? The Ideal Positioning Canada needs to be positioned as: An opportunity to experience unique, authentic nature, while easily retreating to a comfortable environment with good food, quality accommodations, relaxation and socializing with friends. It is the juxtaposition of cities and nature, the fact that they are side by side and that one can easily slide from one environment into the other, that is the true unique appeal of Canada. “After seeing the lakes, I can go and relax in a pub with my friends” The abundance of unique cultural attractions, either in urban or rural environments round out the ideal concept. Page 49 The Way Forward: Considerations 2. Positioning Pitfalls to Avoid Do’s Demonstrate vibrant cities on the edge of nature Don’ts Overly emphasize Canadian cities Visitors can enjoy both outdoor experiences and urban comforts virtually on the same day Too much like 1,000’s of other cities around the world Feature unique nature experiences on one hand (e.g., icons, plus snowmobiling, dog sledding, openness, vistas, etc.) For the French and Germans treat them as gateways. Both want to get away from cities Feature unique cultural experiences (e.g., aboriginal, Canadian urban culture, meeting locals, log cabins, B&B’s, etc.) Re-enforce the availability of comfort (e.g., good food, accommodation, socializing, etc.) Show too much remote wilderness Europeans are intimidated by remoteness, bears – too scary. Use images that would be considered cliché—not unique to Canada 3. Break The Buy Cycle Barrier a) The Buy Cycle model Insignia’s Buy Cycle Model has now been validated by Insignia in 6 countries: China South Korea Taiwan UK France Germany In all markets travellers can relate to the path to purchase process. Buy Cycle a 7-step model. Page 50 The Way Forward: Considerations Buy Cycle Model Key Findings Exhibit 11: Buy Cycle Model – European Markets European Markets Step1—AWARE: 100% Step 2—ON DREAM LIST: 93% Step 3—ON SERIOUSLY CONSIDERING LIST: 43% Step 4—CREATING A “VACATION MOVIE”: 16% Step 5—DETAILED ITINERARY PLANNING: • Millions of prospective visitors are blocked here: U.K. - 7.7 million France - 6.7 million Germany – 6.8 million • The Partners should focus on releasing the bottleneck at this stage 4% Step 6—FINALIZING FLIGHT/LAND ARRANGEMENTS: 1% Step 7—PURCHASE: 1% Page 51 The Way Forward: Considerations What Are The Components of The Ideal Movie? 1. A route or itinerary 2. A sense of time, distance 3. The promise of memorable moments/activities 4. Reassurance of fun and good times 5. Reassurance of comforts (accommodation, good food) 6. Approximate budget requirements Where Do Travellers Go To Build That Movie? 1. Friends (past visitors or destination residents) What better way to get a trusted recommendation on where to go and must sees. 2. Internet Clearly the growth influencer Word search engines most popular Official government sites imply objectivity 3. Existing Packages A great place to get itinerary ideas without any obligation to purchase 4. Travel Agents Their advice is less important now because the internet has provided so much knowledge. Page 52 The Way Forward: Considerations 4. Enhance User Friendly Websites The Partners Should Enhance User Friendly Websites Most official sites appear built for the North American market. They assume travellers are basically familiar with distances and travel times. Yet, for Europeans, visitors express lack of awareness of place names, or distances involved. They need: Maps Itinerary suggestions Routes with trip times by various forms of transportation “Must-sees” along the way Pictures, video tours, etc., of highlights along the way Website Report Card The Insignia team evaluated the 26 key sites provided by provincial/territory partners for the online Forum sessions Only 1 in 26 scored Excellent or Acceptable on all 5 criteria (www.earthrhythms.ca) Criteria Excellent Acceptable Poor N/A 1. Ease of finding visuals 9 6 6 5 2. Ease of finding suggested itineraries 8 7 3 8 3. Ease of finding route maps 8 8 5 5 4. Ease of trip planning 8 7 6 5 5. Ease of linking to online community (including RSS feeds) 4 1 -- 21 Page 53 The Way Forward: Considerations 5. Campaign Needed To Drive Prospects to the Websites Internet used primarily as a planning tool, not as a source of inspiration. Hence, the Partners should continue with its advertising/promotional campaign to drive highly serious prospects to their website(s). The campaign should inform prospects that they can find everything they need on the websites to plan their dream vacation. With millions of European travellers at the Seriously Considering stage, there undoubtedly would be a payback from this type of campaign. Clearly, necessary website content should be in place first to assist their planning. 6. Influential Media Friends or relatives who have been to Canada recently (or who live in Canada) are the most powerful motivators for a trip to Canada. Consequently, viral (i.e. word of mouth) marketing is a direction worth exploring. Blogs, forums and word of mouth promotional techniques are becoming more common place today and are natural channels for the tourism industry. Non-commercial media (e.g. television travel shows and public relations) are also highly influential. These avenues should be explored fully before considering a costly traditional advertising campaign. Page 54 The Way Forward: Considerations 7. Trade Support Fact With internet booking soaring, agents see their future survival depending on three directions: 1. Specializing in specific destinations/products (i.e. cruise specialists, Canada specialists, aboriginal tourism specialists, etc) 2. Winning back customers who have bad experiences booking direct, or 3. Developing their own website to attract internet bookers Implications Clearly, the Canada specialist programme benefits the first solution above. It is well regarded in the industry and should be continued. With agents who are running advertising campaigns for Canada and with websites capable of promoting Canada, there is a definite role for the CTC in coop promotional efforts to help stimulate demand. Fact Although trending down, travel agents are still booking a significant share of trips: U.K.—44% in 2007 Germany—59%, down from 89% in 2001 France—53%, down from 73% in 1999 Implications With ground details, the trade still remains highly influential in directing prospects within the country to specific regions and to specific products/ experiences within a region. Consequently, it will be important for partners in particular to continue a significant level of trade activity. Page 55 The Way Forward: Considerations Fact In 1997, 73% of U.K. travellers said that travel agents were influential in choosing Canada. Today, only 7% in the U.K. say that travel agents have any role in their choice of Canada. In Germany, the comparable figure is 7%, in France 16%. The travel trade interviews confirm these data. Implications This raises the question about the agent’s ultimate influence in selling Canada. It may be time for the CTC to evaluate how much of its resources should be directed toward the trade, since they are no longer primary sellers of Canada Funds could potentially be made available for a more robust consumer campaign. 8. New Product Must Be Brought to Market Tour operators are reluctant to experiment with new product until demand is proven Consequently, agents have only the same old product to sell. Tour operators need to be convinced that demand exists for new product and how important it is to expand their product line. Although packages still constitute a significant share of trips (38% for the U.K., 36% for German and 49% for French trips to Canada), the market will continue to swing more toward non-packaged FIT and, consequently, by pass the operator. This should be motivating enough to develop product for today’s market Page 56 The Way Forward: Considerations A type of product of particular interest to FIT travellers is a 2 or 3 day add on excursion to their core vacation. In other words, for the FIT visitor to Toronto and Niagara Falls, a 2 day side trip to the Prince Edward County wine region or hiking near Georgian Bay, for example. For the FIT visitor to Vancouver, a side trip to Tofino, the Gulf Islands, Whistler, or the Okanagan, for instance. Websites need to package experience rich, add on excursions for overseas visitors. Top Five Priorities 1. Encourage the industry to redesign their websites to make it easy for prospective visitors to create their own “movie” 2. Continue campaigns to drive prospects to the websites promising them that they can easily create their own dream vacation to Canada 3. Ensure that the core CTC campaign is customized enough to reflect unique market needs 4. Ask the agency for suggestions for a viral marketing programme building on the powerful VFR linkage with Canada 5. Consider co-op campaigns with travel agencies who have promotional programmes beyond their own offices Page 57 Findings in Detail Page 58 Travel Trends Page 59 Section 1: U.K. Economic Outlook Page 60 1.1 Economic Overview GDP: 1,301,914 million pounds ($2.1 trillion PPP) Inflation: 2.3% Exchange: 1 pound = 2.18 Canadian Dollars (avg. to Nov. ‘07) Population: 60,622,964 Unemployment: 5.3% Leave Entitlement: 23 days 2008 Issues: Domestic pricing concerns and lending issues point towards economic slowdown. The pound is weakening slightly and a high degree of uncertainty about the housing market and other economic issues is reducing consumer confidence. Use of disposable income on luxuries (such as travel) is likely to decrease in 2008, in response to the uncertainty, but as the situation becomes clearer towards the end of next year will most likely resume as the UK has a strong economic base and no long term difficulties in economic structure. Overall: Strong, but with uncertainty ahead Currently, the UK has one of the highest economic growth rate of the G7 countries (average 2.6% between 2002 and 2006 vs. France 1.7% and Germany 0.9%). With an efficient economy backed by a strong manufacturing segment and a currency that, despite recent devaluation, still trades strongly, the UK economy has a solid base. This is reflected on the individual level, with Cdn$49,196 as the preliminary average disposable income among the workforce in 2007. This figure represents money for luxury items as well as what can be contributed to savings. However, 2008 will be a period marked by a high degree of uncertainty in the UK market. An economic slowdown linked to lowering interest rates and the softening of the housing market is negatively impacting consumer confidence. With no clear forecasts in terms of the housing market’s performance, consumer confidence is expected to remain low until events of 2008 settle the matter. Given that, GDP growth is expected to be lower than in previous years. There are no expectations of increased inflation or unemployment. The UK economy should remain strong during the slowdown and ready to pick back up as consumer confidence increases and growth stabilizes. Page 61 1.2 Population and Demographics The UK is the third most populous country in the European Union (behind Germany and France). Recent population growth has been driven largely by immigration; however increased life expectancy and a rising birthrate have also played a significant part. While the current fertility rate of 1.86 is below replacement level, it is up from the low of 1.63 in 2001. This is largely attributed to immigrant mothers and expected to continue. As a result, the aging of the population seen in most western countries is not as pronounced in the UK. Exhibit Section 1-1: UK Population by Age - 2000 to 2006 Under 5 5 to 9 10 to 14 15 to 19 20 to 24 25 to 29 30 to 34 35 to 39 40 to 44 45 to 49 50 to 54 55 to 59 60 to 64 65+ Total 2000 2001 2002 2003 2004 2005 2006 3,546,277 3,482,415 3,423,407 3,392,736 3,400,748 3,439,350 3,507,009 3,799,548 3,740,495 3,690,751 3,648,287 3,606,725 3,554,000 3,481,776 3,853,786 3,885,033 3,901,148 3,889,875 3,862,598 3,813,900 3,748,735 3,642,198 3,687,328 3,763,662 3,855,987 3,931,147 3,983,300 4,014,223 3,515,089 3,578,581 3,646,554 3,734,526 3,831,276 3,932,850 4,063,044 4,044,992 3,911,342 3,773,226 3,692,605 3,693,002 3,760,050 3,875,133 4,595,433 4,551,490 4,490,837 4,398,487 4,280,110 4,152,500 4,028,979 4,594,310 4,661,099 4,698,768 4,704,413 4,682,032 4,644,050 4,587,546 4,074,923 4,182,065 4,290,601 4,394,550 4,497,299 4,587,150 4,650,583 3,745,401 3,762,128 3,807,894 3,868,653 3,943,744 4,037,400 4,148,565 4,010,904 3,980,281 3,868,985 3,756,129 3,695,750 3,673,650 3,690,609 3,262,712 3,423,326 3,629,311 3,785,092 3,863,095 3,893,850 3,856,370 2,890,487 9,316,459 2,889,663 9,373,444 2,901,600 9,440,918 2,945,803 9,501,636 3,019,460 9,572,732 3,116,550 9,637,800 3,273,791 9,696,654 58,892,514 59,108,687 59,327,658 59,568,776 59,879,864 60,226,500 60,622,964 Source: EuroStat Page 62 1.3 Exchange Rates The pound exchanges favourably, particularly with key long-haul destinations for the UK (particularly English speaking destinations). While there has been some weakening of the pound against the Canadian dollar, the exchange rate is still favourable. In addition, the purchase power of the pound at home is relatively low. Items often cost the same number of pounds in Britain as they would in dollars in Canada. Thus, when going abroad to destinations such as Canada, a pound stretches almost twice as far. Exhibit Section 1-2: Pound Exchange Rates 2000 to 2006 Currency U.S. Dollar CAD Dollar AUD Dollar 2000 1.52 2.25 2.61 2001 1.44 2.23 2.79 2002 1.50 2.36 2.77 2003 1.64 2.29 2.52 2004 1.83 2.38 2.49 2005 1.82 2.21 2.39 2006 1.84 2.09 2.45 Source: FXHistory, from Interbank Rates Page 63 1.4 Economic Trends As mentioned earlier, the UK economy has had a solid growth rate built on a strong manufacturing section contributing to the economy. While GDP and Disposable Income continue to increase at good rates and unemployment remains relatively steady, inflation has been increasing. A mix of consumer price inflation and uncertainty about the housing market has not yet made its mark on the UK economy, though the forecasts are not overly negative. The UK does not face any major difficulties in terms of overall structure of the economy, labour market, or financial sector. It is tied to the economic health of the rest of the EU even though it has not adopted the Euro. As a result, the general slowdown predicted for the EU will impact the UK as well. However, in the past the UK has shown growth over the EU average and otherwise demonstrated a vigorous economy. Exhibit Section 1-3: UK Economic Indicators Trends Indicator 2000 2001 2002 2003 2004 GDP Growth 3.8 2.4 2.1 2.8 3.3 (% over last year) Gross National Disposable Income per 39,180 40,359 42,274 40,506 43,452 person (Converted to CAD$) .8 1.2 1.3 1.4 1.3 Inflation 5.3 5.0 5.1 4.9 4.7 Unemployment 2005 2006 2007(p) 1.8 2.9 3.1 44,630 46,692 49,196 2.1 2.3 - 4.8 5.3 - Source: National Statistics Online, EuroStat (project) Page 64 Section 2: Outbound Travel Trends Page 65 2.1 Size of Potential Market The U.K. potential long-haul travel market has doubled in size since 1997, largely due to more U.K. residents either having travelled abroad in the past 3 years or seriously intending to in the next 2 years. Exhibit Section 2-1: UK Long-Haul Market Trends UK Long-Haul Market Trends 1997 2007 46,000,000 47,600,000 Incidence of long-haul travel* 29.4% 57.7% Projected market size 13,506,000 27,485,000 Adult population Source: CTC Surveys 19971 1 * Travelled beyond Europe in the past 3 years or seriously intend to in next 2 years. Page 66 2.2 Long-haul Market Size Exhibit Section 2-2: UK Long-haul1 Trips --- 2000 to 2006 10,555,716 6,340,762 2000 6,073,310 2001 5,732,821 2002 5,894,550 2003 6,554,629 2004 7,145,340 2005 2006 Source: EuroStat UK holiday visits abroad to non-European destinations increased by 66.5% from 2000 to 2006. While the UK shared a 2002-2003 low point with other European markets, it picked up again most rapidly and has sharply increased in the past 3 years to a current level of 10.6 million long-haul trips. The long-haul market shows steady growth from 2002 on, and is likely to remain a healthy size (10 million+). Given the strong interest in international destinations in the UK, significant drops due to world events are unlikely to be persistent. Likewise, any decreases seen in 2008 due to the housing market slowdown are likely to be limited to the start of the year as consumers adjust. 1 Definition used is the sum of outbound trips to the Americas, Asia, Africa, and Oceania. Page 67 2.3 Travel Trends Looking at major destination regions, no losers emerge between 2000 and 2006. The smallest gains were seen in the well developed markets of the Americas, with Asia and Oceania showing the greatest gains and Africa close behind. Africa’s tourism destinations are improving infrastructural offerings while prices remain reasonable. This overall increase was mostly seen between 2004 and 2006, with 2005 to 2006 showing a sharp spike.1 Exhibit Section 2-3: Destination Changes 2000 vs. 2006 North America Central and South America Africa Asia Oceania 2000 2,996,798 2006 3,353,816 % Change +11.9 975,558 1,357,543 +39.2 1,019,509 1,078,784 270,113 2,203,637 2,942,962 697,758 +116.1 +172.8 +158.3 Source: EuroStat 1 The 2006 EuroStat numbers were updated in January 2008. Page 68 2.4 Arrivals in Canada Exhibit Section 2-4: UK Trips Arriving in Canada 2000 to 2006 862,000 826,000 888,000 801,000 842,000 721,000 691,000 2000 2001 2002 2003 2004 2005 2006 Source: Statistics Canada UK arrivals in Canada have decreased by 2.3 percent since 2000. However, the interim period indicated sharp decline into 2003, followed by a strong bounce back with a peak in 2005. The drop from 2005 to 2006 is not necessarily indicative of the start of another overall decline, and may reflect British travellers going to Germany for the world cup. Supporting this is the 4.4% increase in UK arrivals in January to September 2007 compared to the same period in 2006. Using only 4% as a projection of 2007’s growth over 2006 would yield 876 thousand UK arrivals in Canada, not as high as 2005’s peak, but above those of 2000. Comparing outbound trends, the number of UK residents declaring Canada as their primary destination indicates an increase of 57.5%. This indicates that while more people are stating that Canada is the primary reason they are travelling, there are fewer overall actually engaging in travel to Canada. Page 69 Consumer Surveys – Qualitative and Quantitative Analyses Page 70 Section 3: Destination Motivators Page 71 3.1 Current Destinations Outside Home Country (Past 3 Years) Long-haul travellers take many trips within the EU—in the past 3 years Western Europe (57%), particularly France (24%), being highly popular. Among long-haul destinations, the U.S. (47%) and Asia (30%) dominate. Canada attracted a significant 12%, similar to Australia (14%), during the past 3 years. Exhibit Section 3-1: All Countries Visited in Past 3 Years By Long-Haul Travellers Eastern Europe (17%) North America (53%) Asia (30%) Western Europe (57%) Czech Republic 8% Poland 4% Belgium 7% Netherland 6% Hungary 3% Switzerland 5% Russia 4% Germany 10% Ireland 9% Austria 5% China 4% France 24% Canada 12% Greece 12% United States 47% Portugal 7% Spain 29% Caribbean 12% Caribbean 15% Hong Kong 6% Dubai 6% Italy 16% Mexico 5% Egypt 7% Tunisia 3% Middle East (17%) South/Central American (10%) Japan 3% Turkey 9% Thailand 8% India 7% Singapore 7% Brazil 2% Malaysia 4% South Africa 5% Australia 14% Africa (17%) New Zealand 7% Pacific (19%) Source: Quantitative Survey Q71 1 Base=Past 3 year long-haul traveller (n=2,232) Q.7 During the past 3 years which of these countries or destinations outside United Kingdom did you visit for pleasure and stayed for 3 nights or longer with at least one night in paid accommodation, if any? Page 72 3.2 Long-Haul Destination Market Share Canada captures 8% of long-haul trips (based on most recent trip data), similar to Australia (8%). The prime destinations are the U.S. (38%) and Asia (20%), followed by the Middle East (12%), the Pacific (11%), and the Caribbean (10%). Since the survey was conducted in the fall, there is a potential bias toward the recent (summer/fall) season travel. However, since travellers typically only take one long-haul trip per year (average for past 3 years under 3 - see Exhibit 6-1), the bias is unlikely to be significant. Exhibit Section 3-2: Long-Haul Countries visited Most Recently North America 44% Asia (20%) Russia 2% China 2% Canada 8% Caribbean 10% Japan 2% Turkey 6% United States 38% Middle East (12%) Hong Kong 3% Dubai 4% Thailand 5% Mexico 3% Singapore 4% India 5% Brazil 2% South/Central America (6%) Malaysia 3% South Africa 4% Australia 8% Africa (6%) Pacific (11%) New Zealand 4% Source: Quantitative Survey Q81 1 Base= those who have taken a most recent trip (n=2,232) Q.8a Thinking about your most recent pleasure trip of 3 nights or longer with at least one night in paid accommodation to somewhere beyond the European Union countries, North Africa and the Mediterranean, which of these places did you visit on that trip? Page 73 3.3 Long-Haul Destination Trends Trend data from 1997 reveal a growing interest in Asia, with a decline in travel to Australia. Exhibit Section 3-3: Destination Trends – Most Recent Trips Destination Most Recent Trip U.S. SE Asia / Far East Australia Other Asia Caribbean Canada Other Africa New Zealand Central/South America South Africa Mexico 1997 % 2007 % 38 16 13 10 9 8 6 5 4 4 1 38 20 8 14 10 8 2 4 6 4 3 Source: CTC survey 1997 Page 74 3.4 Destination Imagery – Focus Group Feedback 1. Canada’s Image a) Strengths The appeal of Canada is rooted in nature without question. Rockies Beautiful lakes Wildlife (with a particular fascination for bears) Tranquility Clean The vastness is a double edged sword – on one hand very appealing to a geographically and physically “compressed” society, yet discomforting in terms of how to deal with it – especially wanting a vacation concept devoid of long stretches of “emptiness” figuratively and in reality. Canada’s English heritage factors (English speaking, Commonwealth and the presence of many friends and relatives) are major pulls as well. Page 75 3.4 b) Destination Imagery – Focus Group Feedback Picture Sort The scenes that appeal most to U.K. residents (among over 50 scenes shown) relate to the outdoors but also interesting and comforting city scenes and unique cultural experience. Page 76 3.4 c) Destination Imagery – Focus Group Feedback Canada’s Weaknesses Negative comments, particularly by those who have not been to Canada (yet have it on their dream list): Cold, especially in winter A cultural vacuum Could be boring Nature by itself doesn’t cut it, it needs to focus on culture as well Scale is so massive Lack of culture Need to know more about its history Needs to bring nature and the cities together (As the travel trade noted, the Rockies, the Rocky Mountaineer train and a few days in Vancouver is by far the most popular itinerary and does successfully combine urban and rural). 2. Barriers to Canada A number of international surveys place Canada very high on the “Dream List” – often first or second globally. This is the case in the U.K., Canada has a magical draw which makes it a “must see” at some point in their lives, largely because of its nature beauty and aspirational environment. In the U.K., the Rockies is the single most appealing icon. However, the number of individuals who are in the process of planning a visit, and/or who eventually visit, drops off extremely sharply. Clearly, there are significant barriers that block the Canadian dream visit from becoming a reality. This research has uncovered what the core issues are: 1. Without doubt, the number one reason for the dream not becoming a reality is that prospective travellers do not have a clear concept of a vacation in Canada. They know there is amazing nature beauty but “what else is there to do” – especially on the infrastructure and culture side. Page 77 3.4 Destination Imagery – Focus Group Feedback As they expressed: “Tell us what there is to do” “When we think of Australia we think of great diversity of things to do. But, we don’t know about Canada” “What do you do in-between the cities? How far apart are they”? “Canada is so vast, I didn’t know where to start” (putting a doable vacation concept together) “If you have kids, that’s death” (vastness) “What’s missing is excitement, art, culture, places of interest” “East competes with West – how do I make a choice”? Many want to try soft adventure. Others simply want to observe. Regardless, Canadian nature can be scary. As the trade noted “most Brits have never seen anyone in a Kayak before”. They have no idea of how easy or difficult it is. Bears are very, very appealing. Most want to see them in nature, but are also very aware that there are dangers. Further, most U.K. travellers are highly social and want the comforts of good dining, sociability and good accommodation. Consequently, it becomes critical to communicate that nature can be observed (or participated in) safely with a warm, friendly and comforting infrastructure close at hand. The current impression of many is that they are not certain of the availability of a balanced vacation. 2. The country is so vast that many do not know where to start and, hence, simply defer the decision to go. Current travellers are buying regional based trips (see travel trade comments). The U.S. is purchased on a regional basis – New York, Boston, or Florida, for example. Consequently, Canada needs to be sold regionally to help formulate viable vacation concepts. Page 78 3.4 Destination Imagery – Focus Group Feedback 3. Brits really like the comfort of an English speaking country. Quebec appears to have limited appeal to many because they may have to speak in French. • The bottom line is that the decision to act on the “dream” of a Canadian vacation is easily deferred, as long as it is taken before “I am too old and my health won’t permit it”. • The key barrier is a lack of awareness that Canada can be a highly interesting, rewarding and diverse vacation experience, rooted in nature, but balanced by urban activities and culture. And, reassurance that the Canadian “wilderness” can be experienced safely and easily. • However, while it is important to reassure travellers of good restaurants, accommodation and sociability, they still need to know what is unique about Canada beyond spectacular nature. As discussed later, this can include aboriginal culture experiences, driving in a unique natural setting, polar bear viewing, dog sledding, etc. 3. Building Better Product a) The Ideal Trip When group participants described their ideal trip, it invariably included elements of nature and of infrastructure. For some, the ideal experience leaned toward nature and involvement, for others toward cultural experience, but always with a significant dose of Canada’s unique nature. “Seeing nature and shopping, visiting art galleries, museums, gardens and theatre” “One or two big cities, museums, a few days in the Rocky Mountains. Then my cultural spirit needs to be fulfilled” “I’d like to see the first nations– but (authentically), not through a museum with people dressed up as natives”. “Want some city life and remoteness” “On a motor bike like in Easy Rider (freedom), stopping in towns to get fed (comfort) and safe travel through the countryside (safety)” Page 79 3.4 b) Destination Imagery – Focus Group Feedback The Perfect Day These experiences represent elements of a trip that would be highly appealing. “White water rafting and canoeing” “White water rafting and walking. Seeing the bears” “Horseback riding” “Walking around and seeing the buildings in the cities” “Walk around the lakes, seeing the bears” “Helicopter ride over Niagara Falls and a round of golf” “Looking at buildings, shopping, seeing French Canadian cities” “The morning in Niagara Falls or on observation platform, then back to the city” Once again this market needs exposure to nature (with reassurance of safety) plus infrastructure (could be a city, town or resort) as a significant component. c) Existing Brochures Group participants were given for review a range of U.K. market package brochures featuring Canada. They first used them to help create their ideal trip (discussed earlier) and then were asked to what degree this existing “product” reflected their needs. Many of the comments about the brochure package presentations reflect prospective traveller perceptions that Canada may only be about nature, without a balance of infrastructure activities. “Not enough people” “It needs some life – packed bars, restaurants, a Jazz Festival, something you don’t want to miss” Page 80 3.4 Destination Imagery – Focus Group Feedback “The emerging scene in the cities like Montreal” Pictures are stereotypical. I would want more people in the pictures” It doesn’t tell us what we would be doing in the wilderness” “Will there be guides”? (to ensure we will be safe) “They should sell the cities a bit more, like the restaurants and museums” No people enjoying themselves” “Pictures are too small” “Some of these photos could be anywhere” “The hotel (Chateau Frontenac) is really nice” “I still have the impression there may not be enough to see” “I still can’t make a “movie” (as discussed earlier in the session) “It is hard to really get a feel for Canada in these brochures” Overall, these comments plead for an urban or infrastructure comfort, or at least people enjoying themselves to allay concerns about the Canadian experience being too singularly focused on nature. However, a word of caution – Canada’s primary unique selling proposition remains its incredible nature and this must remain central to its marketing positioning and to the majority of vacation itineraries promoted. By the same token, if urban scenes do not imply the uniqueness of Canada (e.g., by only depicting restaurants, bars and attractions that could be anywhere), Canada is unduly thrown into a competitive arena with thousands of other cities around the world that offer similar amenities. Page 81 3.4 Destination Imagery – Focus Group Feedback As one respondent said: “Don’t just show us people at a restaurant (like any other city would), but focus in on the type of food on the plate that appears relatively unique to Canada (e.g., lobster)” Another concern are the brochures that include the U.S. and Canada, the latter representing a minority of pages. U.K. residents do not like Canada shown in the same folder as America because they say it is very different. Also, it diminishes the perceived value or importance of Canada when only represented on a few of the pages. Finally, a comment on a visual showing older people reinforces the notion that there is no sense of urgency to visit Canada by “younger” individuals. “When I see an older person on the train it means I can wait” This is very important learning and is a reminder of how critical it is to put forward the right visuals. 4. The Olympics 2010 Respondents in all three markets had the same opinion of the Olympics in 2010: There is very little interest in visiting during the Olympics due to crowds, high prices, etc. However, they do provide an opportunity to showcase Canada through film footage, on television during the Games. However, a note of caution: Footage should cover the summer season as well as the winter. Great care must be made to re-enforce that Canada in many seasons is warm. Footage should re-enforce the research learning – that the Canadian vacation experience provides a balanced and memorable vacation experience – beyond just nature but including first class amenities in natural surroundings, an interesting unique culture and activities for all ages. Page 82 3.5 Purpose of Trip - All The destination drivers for British travelers reveal their need for a balanced vacation—to explore new places, enjoy nature, relax and unwind, experience local culture and socialize with friends. Exhibit Section 3-4: All Reasons for Travel – By All Destinations Percent Among Past 3 Years Travellers 51% To see new places To enjoy the natural scenery - lakes, rivers, waterfalls, glaciers, trees, beaches and mountains 45% To relax, unwind and decompress 41% 40% To experience local culture 32% To visit friends and relatives To go shopping 30% To visit historic sites, museums, or galleries 30% 26% To interact with the local people 22% For entertainment and nightlife To be together as a family 21% Low rates, good deals, and discounts 21% To realize a long term dream 20% To visit protected areas, including nature reserve, regional or national parks 20% To experience big cities in another country 20% 17% To see and watch wildlife 11% To attend festivals and/or events 10% To participate in outdoor activities Honeymoon 5% A trip that combined business with pleasure 4% To visit a spa, health centre, or hotsprings 4% To view aboriginal sites and events 4% To go downhill skiing or snowboarding Other Reasons Source: Quantitative Survey Q.9a 2% 7% 1 1 Base=n=2,232 Q.9a What were your reasons for travelling to (Q.8a DESTINATION] Page 83 3.6 Purpose of Trip – All – By Destination The appeal of Canada is clearly nature driven, but also visiting with friends/relatives, experiencing local culture, and interacting with the people. What Canada is not about, where the U.S. excels, is shopping, nightlife and entertainment—reflecting the Brand Map discussed later. With aboriginal tourism, Canada is far behind leader Australia. Exhibit Section 3-5: All Reasons for Travel – By Destination Percent Among Travellers Visiting Each Asia Australia U.S. Canada (382) (165) (832) (884) % % % % All Reasons for Taking Trip To see new places To enjoy the natural scenery – lake, rivers, waterfalls, glaciers, trees, beaches and mountains To relax, unwind, and decompress To experience local culture To visit friends and relatives To go shopping To visit historic sites, museums, or galleries To interact with the local people For entertainment and nightlife To be together as a family Low rates, good deals, and discounts To realize a long term dream To visit protected areas, including nature reserve, regional or national parks To experience big cities in another country To see and watch wildlife To attend festivals and/or events To participate in outdoor activities Honeymoon A trip that combined business with pleasure To visit a spa, health centre, or hot springs To view aboriginal sites and events To go downhill skiing or snowboarding Other reasons 49 49 53 55 50 62 37 68 39 59 33 29 35 34 14 17 23 18 27 34 65 20 27 28 24 24 15 28 35 29 31 46 26 21 31 24 24 24 36 39 48 27 34 32 15 24 14 25 21 34 19 34 17 18 14 9 7 7 8 6 3 5 24 26 14 11 4 6 6 23 3 7 29 13 11 11 4 4 3 2 1 7 24 29 11 13 4 6 5 6 8 6 Source: Quantitative Survey Q.9a Q.9a What were your reasons for travelling to (Q.8a DESTINATION] Page 84 3.7 Purpose of Trip – Main Nature experiences do not dominate UK travel motivations as they do for Germans and the French. Visiting friends/relatives, relaxing and unwinding and seeing new places all rank higher. Exhibit Section 3-6: Main Purpose of Trip – By All Destinations Percent Among Past 3 Years Travellers 20% To visit friends and relatives 13% To relax, unwind, and decompress 12% To see new places To enjoy the natural scenery - lakes, rivers, waterfalls, glaciers, trees, beaches, and To be together as a family 6% To realize a long term dream 6% 8% 5% To experience local culture For entertainment and nightlife 4% Honeymoon 4% To visit historic sites, museums, or galleries 3% To attend festivals and/or events 3% To experience big cities in another country 3% A trip that combined business with pleasure 2% To see and watch wildlife 2% Low rates, good deals and discounts 2% To go shopping To visit protected areas, including nature reserve, regional or national parks To participate in outdoor activities 2% 1% To interact with the local people 1% To go downhill skiing or snowboarding 1% To view aboriginal sites and events To visit spa, health centre, or hotsprings Other Reasons 1997 27% 1% * -3% 1 Source: Quantitative Survey Q.9b 1 Base n=2,232 Q. 9b Which of those was your main reason for travel? *Less than 0.5% Page 85 3.8 Purpose of Trip – Main – By Destination People oriented activities actually outrank nature as a motive to visit Canada for the British. Again, this reinforces the need for socializing in creating a balanced positioning concept for marketing Canada. However, VFR travel is well down from 1997. Exhibit Section 3-7: Main Purpose of Trip – By Destination Main Reason for Taking Trip To visit friends and relatives To relax, unwind, and decompress To see new places To enjoy the natural scenery – lakes, rivers, waterfalls, glaciers, trees, beaches and mountains To be together as a family To realize a long term dream To experience local culture For entertainment and nightlife Honeymoon To visit historic sites, museums, or galleries To attend festivals and/or events To experience big cities in another country A trip that combined business with pleasure To see and watch wildlife Low rates, good deals, and discounts To go shopping To visit protected areas, including nature reserve, regional or national parks To participate in outdoor activities To interact with the local people To go downhill skiing or snowboarding To view aboriginal sites and events To visit a spa, health centre, or hot springs Other reasons Percent Among Travellers Visiting Each Asia Australia U.S. Canada (382) (165) (832) (884) Canada % % % % 1997 18 12 15 45 2 10 20 9 14 32 4 11 10 8 7 22 5 4 12 1 3 5 2 1 6 8 2 1 2 1 5 2 7 7 2 8 3 2 3 6 4 5 1 1 3 1 1 1 4 1 1 3 1 1 2 2 - * 2 3 1 1 1 1 3 1 1 1 2 * 3 * 1 * 2 2 * 1 3 * 1 4 * 3 Source: Quantitative Survey Q.9b *Less than 0.5% Q. 9b Which of those was your main reason for travel? Page 86 47% 3.9 Destination Activities – Culturally Oriented Culturally dominated activities for UK travellers include visiting places of historical interest and seeing old architecture, but also meeting the people—visiting small towns, getting to know the local inhabitants and enjoying good food. Exhibit Section 3-8: Activities Participated on Trip – Culturally Oriented – By All Destinations Percent Among Past 3 Years Travellers Visiting places of historical interest 63% Fine dining 62% Visiting small towns 61% 54% Getting to know the local inhabitants Seeing old architecture 50% Taking city tours 49% 45% Visiting museums or art galleries 42% Attending theatres, clubs or shows 39% Visiting friends or relatives 36% Seeing modern architecture 34% Visiting world heritage sites 31% Staying at a luxury resort 27% Attending festivals or fairs Aboriginal cultural experiences, celebrations, and attractions 18% Visiting a spa 17% Visiting casinos 16% 14% Taking a wine/culinary tour Attending professional sports events Attending Rodeos 12% 5% 1 Source: Quantitative Survey Q.19a 1 Base: n=2,232 19a) Which, if any, of the following activities did you participate in while on that trip to (DESTINATION IN Q. 8a) Page 87 3.10 Destination Activities – Nature Oriented On the nature side, passive activities far outweigh soft adventure—particularly seeing coastlines, sunbathing and viewing authentic nature. Exhibit Section 3-9: Activities Participated on Trip – Nature Oriented – By All Destinations Percent Among Past 3 Years Travellers Seeing beautiful beaches & coastlines Sunbathing or other beach activities Observing wildlife in their natural environment 62% 55% 46% 45% Viewing rivers or waterfalls 40% Viewing mountains 38% Visiting wilderness areas 29% Taking nature tours 23% Trekking in a nature area 16% Taking a cruise Taking a garden or flower tour 15% 14% Canoeing/kayaking/boating 13% Taking a rail tour 12% Whale watching 11% Visiting hotsprings 9% Viewing autumn leaves Camping in a natural setting 8% Cycling 8% Viewing glaciers 8% Trail riding on horseback 7% Golfing 7% 5% Sport Fishing Viewing Aurora Borealis (Northern Lights) Downhill skiing or snowboarding 3% 3% Hunting 2% Heli/cat skiing 2% Dog sledding 2% Source: Quantitative Survey Q.19a1 1 Base: n=2,232 19a Which, if any, of the following activities did you participate in while on that trip to (DESTINATION IN Q. 8a) Page 88 3.11 Destination Activities – Culturally Oriented – by Destination With culturally oriented activities, the British want to see Canada’s historical attractions, but they also desire getting close to the culture—small towns, the people, friends/relatives. Relative to the U.S., Canada is far more often visited to see historic sites, including world heritage sites, and the Canadian way of life in both cities (e.g., city tours) and smaller towns. The U.S. is more about entertainment. Exhibit Section 3-10: Activities Participated on Trip – Culturally Oriented – By Destination Percent Among Travellers Visiting Each Asia Australia U.S. Canada (382) (165) (832) (884) % % % % Culturally Oriented Activities Participated In Visiting places of historical interest Fine dining Visiting small towns Getting to know the local inhabitants Seeing old architecture Taking city tours Visiting museums or art galleries Attending theatres, clubs or shows Visiting friends or relatives Seeing modern architecture Visiting world heritage sites Staying at a luxury resort Attending festivals or fairs Aboriginal cultural experiences, celebrations, and attractions Visiting a spa Visiting casinos Taking a wine/cultural tour Attending professional sports events Attending rodeos 74 60 68 62 58 60 52 38 46 41 42 38 33 69 67 78 63 47 58 59 44 75 57 43 28 35 56 61 53 46 42 48 46 52 37 41 30 25 28 67 58 67 51 48 57 52 36 54 45 41 16 26 28 56 10 19 28 16 17 11 10 25 28 39 25 8 10 23 9 14 5 14 13 13 17 5 Source: Quantitative Survey Q.19a Page 89 3.12 Destination Activities – Nature Oriented – By Destination Beaches and sunbathing dominate Australia outdoor activities, while in Canada rivers, waterfalls and mountains as well as seeing wildlife in nature are the main attractions on the nature side. Only a minority aspires to soft adventure. A trip to the U.S. is rarely nature focussed, clearly providing a clear point of difference for Canada. Exhibit Section 3-11: Activities Participated on Trip – Nature Oriented – By Destination Nature Oriented Activities Participated In Seeing beautiful beaches and coastlines Sunbathing or other beach activities Observing wildlife in their natural environment Viewing rivers or waterfalls Viewing mountains Visiting wilderness areas Taking nature tours Trekking in a nature area Taking a cruise Taking a garden or flower tour Canoeing/kayaking/boating Taking a rail tour Whale watching Visiting hot springs Viewing autumn leaves Camping in a natural setting Cycling Viewing glaciers Trail riding on horseback Golfing Sport fishing Viewing Aurora Borealis (Northern Lights) Downhill skiing or snowboarding Hunting Heli/cat skiing Dog sledding Percent Among Travellers Visiting Each Asia Australia U.S. Canada (884) (382) (165) (832) % % % % 66 85 48 40 58 79 41 18 48 71 38 55 51 65 37 77 45 54 33 61 38 62 32 49 39 46 18 35 29 35 17 30 23 22 13 16 27 21 10 19 20 19 10 15 23 28 11 19 15 22 11 19 17 26 8 15 11 8 11 22 14 19 4 10 13 11 6 10 10 12 6 25 10 8 5 8 10 10 9 5 8 13 4 7 8 11 2 7 6 5 2 9 6 4 2 3 6 6 1 3 4 3 1 5 Source: Quantitative Survey Q.19a Which, if any, of the following activities did you participate in while on that trip to (DESTINATION IN Q. 8a) Page 90 3.13 Importance of Attributes in Destination Selection This chart ranks 34 destination selection attributes on importance. Exhibit Section 3-12: Importance of attribute in destination selection – By All Destinations Percent Among Past/Future Travellers Rated Attribute Very Important 57% Getting away/escaping from the demands of home 57% Enjoying a relaxing atmosphere 54% Feeling secure and safe 50% Being in a clean, healthy environment 38% Seeing as much as possible in the time available 37% Surrounded by beautiful, unspoiled nature 35% Opportunity to try different cuisines 30% Bringing the family together 29% Experiencing an exciting environment 28% Meeting and interacting with local people 25% Seeing wildlife in nature Coming home with exciting travel stories 23% Visiting historical attractions 23% Sunbathing or other beach activities 23% 22% Experiencing a different country's healthy lifestyle 22% Experiencing unspoiled nature 21% Experiencing a wide, spacious outdoor environment 20% Visiting a place my friends would love to see 20% Staying at luxury surroundings 19% Availability of a wide selection of activities 15% Visiting museums or art galleries Enjoying the convenience of the modern world while experiencing nature Visiting a local supermarket 14% 14% 13% Experiencing a modern culture Spending time in one area to experience how local people live Attending theatures, clubs or shows 11% Spending time in the home of a resident 11% 12% 10% Seeing first hand what I learned in school Experiencing aboriginal culture 9% Staying in accommodation unique to that country 9% Participating in active outdoor sports 7% Enjoying Alpine skiing/snowboarding 4% Travelling in a group tour 4% Roughing it 4% Source: Quantitative Survey Q.201 1 Base=n=2,697 Q.20 Please imagine that you are taking an overseas pleasure trip beyond the European Union countries, North Africa and the Mediterranean for 3 nights or longer with at least one night in paid accommodation. For each statement on this page check one box to show how important that reason is to you when considering such a trip. Page 91 3.14 Destination Rating The destination ratings provide a clear view of Canada’s strengths and weaknesses vis-à-vis its three primary competitors. Exhibit Section 3-13: Canada’s Strengths and Weaknesses vs. Competitors Canada’s Strengths • • • • • Vs. U.S. Surrounded by beautiful, unspoiled nature Experiencing unspoiled nature Being in a clean, healthy environment Seeing wildlife in nature Attracts more historical sightseeing and experiencing communities • • Vs. Australia Enjoying Alpine (downhill) skiing or snowboarding Rivers, waterfalls, autumn leaves, and glaciers • • • • • • • Canada’s Weaknesses • • • • • Summary • • • Attending theatre, clubs, shows Sunbathing/beach activities Experiencing a modern culture Staying at luxury surroundings Visiting museums or art galleries • Canada is way ahead in terms of a natural experience Also, Canadian history and way of life is more appealing But the U.S. provides more entertainment and luxury city stays • • • • • • Experiencing aboriginal culture Sunbathing or other beach activities Roughing it Wine/cultural tours Observing wildlife Visiting hot springs • Except on a very few dimensions Canada’s image is very similar to Australia’s. Canada is ahead on skiing, Australia on aboriginal attractions, beach and roughing it • • • • Vs. South East Asia Being in a clean, healthy environment Participating in active outdoor sports Experiencing a wide, spacious outdoor environment Feeling secure and safe Enjoying the convenience of the modern world while experiencing nature Surrounded by beautiful, unspoiled nature Seeing wildlife in nature Opportunity to try different cuisines Sunbathing or other beach activities Experiencing local life in one area Canada is far ahead in experiencing a natural environment. S.E. Asia offers sun and exotic cuisine. Page 92 3.14 Destination Rating Exhibit Section 3-14: Destination Rating Among Those Who Claimed Each Attribute Very/Somewhat Important When Considering a Trip S.E. Asia Australia U.S. Canada % % % % Attribute Applies Extremely Well to Each Destination* Getting away/escaping from the demands of home 43 60 53 53 31 Enjoying a relaxing atmosphere 56 36 48 Feeling secure and safe 25 55 48 57 Being in a clean, healthy environment 15 56 48 63 Seeing as much as possible in the time available 40 46 57 43 Surrounded by beautiful, unspoiled nature 36 61 33 61 Opportunity to try different cuisines 68 41 39 34 Bringing the family together 23 39 43 34 Experiencing an exciting environment 44 50 50 43 Meeting and interacting with local people 55 55 49 48 Seeing wildlife in nature 36 62 34 55 Coming home with exciting travel stories 54 57 54 49 Visiting historical attractions 50 46 51 44 Sunbathing or other beach activities 39 61 45 18 Experiencing a different country’s healthy lifestyle 33 51 29 46 Experiencing unspoiled nature 38 62 33 59 Experiencing a wide, spacious outdoor environment 25 65 43 59 Visiting a place my friends would love to see 42 51 46 43 Staying at luxury surroundings 35 45 61 41 Availability of a wide selection of activities 30 54 57 47 Visiting museums or art galleries 29 40 59 43 Enjoying the convenience of the modern world while experiencing nature 26 53 40 52 Visiting a local supermarket 40 46 57 46 Experiencing a modern culture 22 38 55 36 Spending time in one area to experience how local people live 51 41 30 33 Attending theatres, clubs or shows 20 35 63 35 Spending time in the home of a resident 26 36 34 29 Seeing first hand what I learned in school 31 39 41 32 Experiencing aboriginal culture 23 65 15 16 Staying in accommodation unique to that country (e.g., guest ranch, 36 40 44 47 lodge, etc.) Participating in active outdoor sports 20 49 47 42 Enjoying Alpine (downhill) skiing or snowboarding 8 18 41 53 Travelling in a group tour 32 34 35 29 Roughing it 34 38 21 21 Source: Quantitative Survey Q.21 Q.21 Now, for each statement below please check which of these travel destinations each statement applies to extremely well. You can check as many destinations as you like as long as it applies extremely well. You can base your choices on your impressions, experiences or anything else that you have seen, heard or read. * In order of importance when deciding an overseas pleasure trip (exhibit 3-12) Page 93 3.15 Perceptual Brand Map The Correspondence Analysis on the next page correlates destination imagery ratings on two computer driven axes: Culture New World Adventure Exotic Discoveries Nature Each of the attributes is plotted on the map with the positioning of each destination. The map, through multivariate analysis, illustrates the relative position of each destination and each attribute, based on their ratings on each. In other words, the more a particular destination is uniquely associated with an attribute the closer it is charted to it. The map should be interpreted in a “big picture” sense — which groups of attributes are most related to which areas of the map; in turn, which countries are most associated with these areas. Part of the map interpretation is to see if there is any continuum as one moves from left to right or top to bottom. It is a subjective interpretation of the chart pattern, New World Adventure is chosen because the attributes associated with North America are on the left side of the chart, while the attributes that are more SE Asia and Southern Hemisphere related tend to fall on the right hand side. The attributes with a cultural component tend to fall towards the top and those with a nature component tend to fall towards the bottom, hence the interpretation of the vertical axis. Note that the map is created based on the interaction of all the attributes with the four countries; the interpretation of the axes emerges from the map after it has been created. Brand Positioning Australia Alone in the Southeast Quadrant, Australia aligns with relaxation, healthy lifestyle, with an element of exoticism from aboriginal culture. U.S.A This country dominates the Northwest sector and is strongly associated with modern, urban culture, luxury and a wide variety of activities. Page 94 3.15 Perceptual Brand Map S.E. Asia In the Northeast quadrant, SE Asia is associated with sun, beaches and different cuisines. Canada Clearly entrenched in the Southwest sector, Canada aligns with the outdoors— active, spacious, clean, as well as a very safe environment. Its positioning well away from cultural activities and an exciting environment reinforces the weaknesses of the country’s image discussed earlier. The strength of its nature is critical because of its importance to UK travellers, but the product concept is not balanced appropriately. Exhibit Section 3-15: Brand Attribute Map Culture Different cuisines Theatres, clubs or shows USA Luxury Modern culture Museums/galleries See much as possible Local supermarket Skiing/snowboarding Wide selection activities Group tour Exciting environment What I learned in school SE Asia How locals live Travel stories Meet locals Friends love to see Family together Getting away/escape Home of resident Sunbathing/beach Canada Roughing it Secure/safe Healthy lifestyle Relaxing Active outdoor sports Clean, healthy Modern + Nature Surrounded by nature Seeing wildlife Unspoiled nature Spacious outdoors Australia Aboriginal culture Nature Source: Quantitative survey Q.21 Q.21 Now, for each statement below please check which of these travel destinations each statement applies to extremely well. You can check as many destinations as you like as long as it applies extremely well. You can base your choices on your impressions, experiences, or anything else that you have seen, heard or read. Page 95 Exotic Discoveries New World Adventures Unique accomodation Historical attractions 3.16 U.K. -- Product Benefit Laddering To further probe traveller motivation, Insignia used their Inner Consciousness Laddering Model to draw out the “higher order” benefits that travellers are seeking in a Canadian vacation. The hierarchy process: • Begins with fundamental products or activities sought; • Then uncovers the benefits sought by experiencing those products/activities; • And finally, at the highest level, the personal values that are being fulfilled by the experiences. For the British, the Canadian vacation experience at the product/activity level is grounded in nature involvement, grand nature observation, and city life. At • • • • the Benefits level, these nature and personal experiences lead to: Grounding Rejuvenation of the spirit Personal connection with nature Feeling the balance between the civility of Canadian cities so close and in harmony with authentic, untouched nature At the highest order, the Value received is: • Renewal of body and mind Implications The best way to position Canada’s products (city, cultural, and nature) is to focus on the physical and emotional rewards that they provide. Page 96 3.16 U.K. -- Product Benefit Laddering Renewal of Mind and Body Higher Order Values Heightened sense of well-being Benefits (Best Positioning) Feel freedom Personal connection with nature Product Activities Energized/ rejuvenated Stories told by Grounded friends Re-integration and re-invention of self Civilized adventure Test myself physically Feel humbled /insignificant Feel balance of civility and untouched nature Nature Involvement Grand Nature Observation City Life Vancouver Rocky Nature Wildlife Niagara area Mountain Soft Safe walks Hiking observation Falls Train adventure Icefields English Speaking Friendly Calgary Page 97 Section 4: Destination Trip Profile Page 98 4.1 Duration The British typically travel for 2 weeks when going abroad. The average longhaul trip lasts 17 nights. In 1997, the average duration was 25 nights away, providing clear evidence that travellers are taking shorter trips aborad. Exhibit Section 4-1: Number of Nights Away From Home – By All Destinations Percent Among Past 3 Years Travellers 23% <10 54% 10 - 20 Number of Nights 17% 21 - 30 31 - 50 51+ 4% 3% 1997 Median Average 14 Nights 17.0 Nights 25.0 nights (avg) Source: Quantitative Survey Q.10a1 1 Base: n=2,232 Q.10a On that trip to (Q. 8a) DESTINATION how many nights, in total, were you away from home? Page 99 4.2 Duration – By Destination Trips to the U.S. or Canada are more likely to last 2 weeks, while a journey to Australia last much longer. This is a reminder that a trip to Canada is far less onerous from a time perspective than one to Australia. The duration of a Canadian trip is only slightly shorter (18.1 nights away) than in 1997 (21.4 nights) Exhibit Section 4-2: Number of Nights away from home – by destination Percent Among Travellers Visiting Each Asia Australia U.S. Canada (382) (165) (832) (884) % % % % Number of Nights <10 19 8 23 21 10 – 20 47 20 57 54 21 – 30 24 44 16 18 31 – 50 6 15 3 4 51+ 5 14 2 3 15 24 14 14 20.4 35.2 16.3 18.1 Median of nights Average # of nights Source: Quantitative Survey Q.10a Median Average Nights Spent in Canada # 12 12.9 Q.10a On that trip to (Q. 8a) DESTINATION how many nights, in total, were you away from home? Q.10b (IF CANADA IN Q.8a, ASK) How many nights, in total, did you spend in Canada? Page 100 Canada 1997 21.4 (avg) 4.3 Multi-Country Visits Three in ten British travellers are combining a trip to Canada with a stay in the U.S.. And, when they do, they tend to split their time between the 2 countries—11 nights in Canada, 9 in the U.S.. Exhibit Section 4-3: Incidence/Duration of Visit in Canada/U.S. Among Past 3 Years Travellers to Canada % Visited Canada/U.S. Combined Canada Only # of Nights Spent Total In Canada In U.S. 30% 23.2 11.3 8.6 70% 15.9 13.6 n/a 18.1 12.9 2.6 Total Travellers to Canada Source: Quantitative Survey Q.10a,b,c 1 Base: 10.a 10.b 10.c 1 n=884 On that trip to (Q. 8a) DESTINATION), how many nights, in total, were you away from home? (IF CANADA IN Q.8a, ASK) How many nights, in total, did you spend in Canada? IF CANADA IN Q.8a, ASK) How many nights, in total, did you spend in the United States on that trip, if any? Page 101 4.4 Time of Travel The travel season is quite broad for the British. They travel actively from February to October. Exhibit Section 4-4: Month of Travel – By All Destinations Percent Among Past 3 Year Travellers January 5% February 20% 7% March 8% April 8% May 9% June 9% July 9% 26% August September 14% October 10% November December 34% 11% 6% 21% 5% Source: Quantitative Survey Q.111 1 Base=n=2,232 Q.11 And when did you take that trip to (DESTINATION IN Q.8a)? Page 102 4.5 Time of Travel – By Destination May to September is the preferred time of travel to Canada. This is a little narrower than the U.S. trip pattern (where better weather can prevail longer)— April to October. Asia destined trips are year round, Australia from January to May primarily. Exhibit Section 4-5: Month of Travel – By Destination Percent Among Travellers Visiting Each Destination Jan Feb Mar April May June July Aug Sept Oct Nov Dec 8% 10% 9% 9% 10% 7% 8% 7% 9% 10% 8% 5% 10% 27 26 24 24 Asia 17% 35 7% 10% 10% 6% 4% 8% 7% 7% 7% 6% Australia 27 3% 5% 7% 9% 10% 7% 9% 12% 19 20 3% 3% 6% 6% 11% 15 26 29 12% 13% 37 13% 44 16% 11% 8% 5% U.S. 17% 23 9% 3% 3% Canada Source: Quantitative Survey Q.11 Q.11 12 And when did you take that trip to (DESTINATION IN Q.8a)? Please tell me the year and month you started that trip? Page 103 15 4.6 Party Size and Composition Only 19% of British long-haul travellers take children along. Most travel as couples (62%), similar to 1997 (63%) Exhibit Section 4-6: Party Size and Composition – By All Destinations Percent Among Past 3 Year Travellers Spouse/significant other 1997 62% 23% 19% Children 63% Travelled alone 15% 18% Friends 15% 11% Party Member 9% Other relatives Business associates/colleagues n/a 8% Parents Organized group/club n/a n/a 2% n/a 1% Average # of Party Members 3.2 2.7 Source: Quantitative Survey Q.12, 13a1 1 Base=n=2,232 Q.12 With whom did you travel on that trip to (DESTINATION IN Q.8a Q.13a Including yourself, how many people were there in your immediate travel party? Page 104 4.7 Party Size and Composition – by Destination Canada is preferred by couples. Australia often attracts solo travellers (1 in 4), the U.S.--families (1 in 4). Exhibit Section 4-7: Party Size and Composition – by Destination Percent Among Travellers Visiting Each Asia Australia U.S. Canada (382) (165) (832) (884) % % % % Canada 1997 Party Member Spouse/significant other 56 54 63 62 56% Children 12 14 24 17 20% Travelled alone 19 27 12 16 28% Friends 15 13 16 13 10% Other relatives 8 8 11 9 n/a Parents 8 4 9 7 n/a Organized group/club 3 4 1 2 n/a Business associates/colleagues 2 * 1 1 n/a 3.2 2.5 3.1 3.1 2.3 Average # of party members Source: Quantitative Survey Q. 12, 13a * Less than 0.5% Q.12 With whom did you travel on that trip to (DESTINATION IN Q.8a) Q.13a Including yourself, how many people were there in your immediate travel party? Page 105 4.8 Travelled as FIT vs. Group FIT dominates British long-haul travel (89%). However, half do buy packages (43% an FIT package, 11% a group). This is higher than in 1997 — when 39% used packages. Exhibit Section 4-8: FIT vs. Group Travel – By All Destinations Percent Among Past 3 Year Travellers Total FIT (nongroup) 89% FIT - bought package 43% FIT - no package 47% Total Package 54% Total Group Total Package 1997 39% 11% Source: Quantitative Survey Q.16,17a1 1 Base: n=2,232 Q.16 On that trip, did you travel with your immediate party only or as part of a larger group tour? Q.17a On that trip, did you buy a package that included airfare and accommodation? Page 106 4.9 Travelled as FIT vs. Group – By Destination Packages are not very popular to Canada. Only 37% of trips to Canada are on a package. Nine in ten to Canada are FIT—mostly no package (62%). FIT packages are far more common to the U.S. and Asia. In 1997, only 23% used a package to Canada, also lower than now (37%) Exhibit Section 4-9: FIT vs. Group – By Destination Percent Among Travellers Visiting Each Asia Australia U.S. Canada (382) (165) (832) (884) % % % % Travelled as: Total FIT (non-group) 86 92 94 87 Total FIT – bought package 45 33 40 24 Total FIT – no package 41 58 54 62 14 9 6 13 Total Group Source: Quantitative Survey Q.16,17a Q.16 On that trip, did you travel with your immediate party only or as part of a larger group tour? Q.17a On that trip, did you buy a package that included airfare and accommodation? Page 107 4.10 FIT Package Components The 43% who bought an FIT package (air and accommodation) on their most recent long-haul trip usually include airport transfers, but inclusions thin out after that. Exhibit Section 4-10: FIT Package components Beyond Air and Accommodation – By All Destinations Percent Among Those Who Travelled on FIT Package Airport transfer 61% Restaurant meals 34% Entertainment Package Components (beyond air and accommodation) 28% Car rental 23% Outdoor activities 16% Guided tours at destination Admission to local attractions Ground transportation Other Only airfare & accomodation 13% 11% 9% 6% 15% Source: Quantitative Survey Q.17b1 1 Base: n=816 17b What else was included in the package, if any? Page 108 4.11 FIT Package Components – By Destination Canadian packages are typical in that they often include airport transfers (52%), sometimes car rental (32%) but little else on a consistent basis. Exhibit Section 4-11: FIT Package components Beyond Air and Accommodation – By Destination Percent Among Those Who Travelled on FIT Package Asia Australia U.S. Canada (165) (58)* (290) (205) % % % % Package Components (beyond air/accommodation) Airport transfers 61 56 44 52 Restaurant meals 26 27 16 21 Entertainment 23 14 14 17 Car rental 22 30 41 32 Outdoor activities 13 9 7 12 Guided tours at destination 22 31 8 18 Admission to local attraction 12 14 16 12 Ground transportation between overnight destinations 16 15 5 21 Other 9 8 4 3 11 15 20 21 Only airfare and accommodation 1 Source: Quantitative Survey Q.17b * Caution small base size 1 17b) What else was included in the package, if any? Page 109 4.12 FIT Car Rental Renting a car is quite common in Canada (44%) and the U.S. (52%). Note that most rentals in Canada are not part of a package. Clearly many are picking up cars on arrival and proceeding on their own. Exhibit Section 4-12: FIT Car Rental Percent Among FIT Travellers Vising Each Destination 52% 49% 44% 11% 37% 18% 9% 29% 11% 12% 38% 34% 35% U.S. Canada 26% 18% Total FIT Traveller Asia Australia Car rental not included in package Car rental included in package Source: Quantitative Survey Q.17b,c1 1 Base: n=1,962 17b) What else was included in the package, if any? 17c) (IF NO AT Q.17A OR IF CAR RENTAL NOT CHECKED IN Q.17B, ASK Q.17C. OTHERS SKIP TO Q.18) Did you rent a car on that trip? Page 110 4.13 FIT Trip Components Booked Before Departure vs. During Trip Long-haul airfares, transfers, accommodation, local flights and often car rentals tend to be pre paid. Otherwise, trip components are usually purchased locally. Exhibit Section 4-13: FIT Trip Components Booked Before Departure vs. During Trip Percent Among FIT Travellers Did not use 90% Airfare 8% 2% 92% 38% 50% All airport transfers Local flights between overnight destinations 12% 62% 76% 20% 5% 24% 65% Car rental 25% 10% Ground transportaton between overnight 11%10% destinations 35% 79% 21% 66% Paid accommodations 15% 19% 81% 35% Admission to local attractions 12% 53% 65% 67% Admission to events 6% 33% 27% 61% Guided tours at destinations 7% Other activities (recreational activities, 4% spa, etc) Source: Quantitative Survey Q.17d1 32% 39% 55% 40% 45% Booked Before Leaving Home Booked During Trip 1 Base: n=1,962 Q.17d On that trip, what percentage of each trip components did you book or purchase in advance of leaving home versus booking or arranging while on the trip? Page 111 4.14 FIT Trip Components Booked Before Departure vs. During Trip – by Destination The pattern for Canada is quite typical. Exhibit Section 4-14: FIT Trip Component Booked Before Departure vs. During Trip – by Destination Airfare Asia (322) % 92 Percent Among FIT Travellers Visiting Each Destination Australia U.S. Canada (150) (761) (757) % % % 96 93 93 Booked before leaving home Booked during trip Did not use Airport Transfers Booked before leaving home Booked during trip Did not use 87 5 8 69 52 17 31 92 4 4 69 53 16 31 92 1 7 56 41 15 44 91 2 7 50 34 16 50 Local Flights Between Overnight Destinations Booked before leaving home Booked during trip Did not use Car Rental Booked before leaving home Booked during trip Did not use Ground Transportation Between Overnight Destinations Booked before leaving home Booked during trip Did not use Paid Accommodation 40 59 21 24 30 10 60 28 14 14 73 35 44 15 41 44 22 22 55 38 18 3 79 48 42 7 52 15 19 5 76 41 31 10 59 24 14 20 65 81 58 23 19 22 16 62 82 52 30 18 8 7 85 85 72 13 15 12 12 76 74 55 20 26 Booked before leaving home Booked during trip Did not use Page 112 4.14 FIT Trip Components Booked Before Departure vs. During Trip – by Destination Asia (322) % Admission to Local Attractions Percent Among FIT Travellers Visiting Each Destination Australia U.S. Canada (150) (761) (757) % % % 65 71 74 66 Booked before leaving home 8 10 21 6 Booked during trip 57 62 53 60 Did not use 35 29 26 34 40 48 34 36 Booked before leaving home 6 9 9 5 Booked during trip 34 39 25 31 Did not use 60 52 66 64 50 54 32 37 Booked before leaving home 12 11 5 5 Booked during trip 38 43 26 32 Did not use 51 46 68 64 51 62 43 46 Booked before leaving home 7 6 3 5 Booked during trip 45 56 39 41 Did not use 49 38 57 54 Admission to Events Guided Tours at Destinations Other Activities (Recreational Activities, Spa, etc.) Source: Quantitative Survey Q. 17d Q.17d On that trip, what percentage of each trip components did you book or purchase in advance of leaving home versus booking or arranging while on the trip? Page 113 4.15 Accommodation The British appear budget conscious with accommodation—preferring mid-priced to luxury city hotels. Resorts and the home of friends/relatives round out the top choices. However, staying with friends/relatives is far less common now than in 1997. Exhibit Section 4-15: Type of Accommodation – By All Destinations Percent Among Past 3 Years Travellers Mid-priced city hotel/motel 1997 36% n/a 26% Resort hotel 37% House of friend or relative 21% 42% Luxury city hotel 21% 28% 11% Budget city hotel 9% Bed and Breakfast 5% Cottage/cabin 4% Cruise ship Authentic wilderness lodge 3% Guest ranch 3% Camping 16% 2% On a farm 1% Caravan/motorhome 1% Other 7% Source: Quantitative Survey Q.181 1 Base: n=2,232 Q.18 In what type of accommodation did you stay? (Please check all that apply) Page 114 4.16 Accommodation-By Destination Mid-priced city properties and the home of friends/relatives lead the preferences for Canada. However, the home of a relative or friend is far lower than in 1997 (61%), further evidence that travel for purely a pleasure purpose is expanding. Exhibit Section 4-16: Type of accommodation – By Destination Percent Among Travellers Visiting Each Asia Australia U.S. Canada (382) (165) (832) (884) Canada % % % % 1997 Accommodation Type Mid-priced city hotel/motel 33 39 49 48 35% Resort 28 23 16 18 n/a Home of friend or relative 22 49 20 33 61% Luxury city hotel 33 25 20 23 16% Budget city hotel 17 24 11 15 22% Bed and Breakfast 12 25 6 10 Cottage/cabin 4 9 6 7 Cruise ship 5 2 4 6 Authentic wilderness lodge 3 4 2 2 Guest ranch 3 6 2 2 Camping 2 5 2 2 On a farm 1 4 1 1 Caravan/motor home 2 6 1 2 Other 4 9 10 5 Source: Quantitative survey Q.18 Q.18 In what type of accommodation did you stay? *Less than 0.5% Page 115 4.17 Trip Expenditure The average trip expenditure is £3,400, £200 per trip per day. Exhibit Section 4-17: Trip Expenditure – By All Destinations Percent Among Past 3 Years Travellers Under £ 1,000 11% £ 1,000 - <£ 2,000 25% £ 2,000 - <£ 4,000 32% £ 4,000 - <£ 6,000 17% £ 6,000 - <£ 8,000 £ 8,000 - <£ 10,000 £ 10,000+ 7% 4% 4% Total trip expenditure (Average) £3,400 Expenditure per person per trip £1,063 Expenditure per trip per day £200 Expenditure per person per day £63 Source: Quantitative Survey Q.19b1 1 Base: n=2,232 £100=CAD $204.99 (Bank of Canada exchange rate– Nov. 28, 2007) Page 116 4.18 Trip Expenditure – By Destination The budget required for a trip to Australia is significantly higher than to Canada due to the longer duration. This is a reminder of one of the advantages of Canada over its Southern hemisphere competitor. Exhibit Section 4-18: Trip Expenditure – By Destination Percent Among Travellers Visiting Each Asia Australia U.S. Canada (382) (165) (832) (884) % % % % Expenditure Under £1,000 5 5 10 11 £1,000 - <£2,000 27 13 24 27 £2,000 - <£4,000 31 26 32 30 £4,000 - <£6,000 17 20 20 16 £6,000 - <£8,000 8 14 8 8 £8,000 - <£10,000 7 8 3 3 £10,000+ 6 14 4 4 Total Trip Expenditure (Avg) £ 3,900 5,500 3,400 3,300 Expenditure per person per trip £ 1,219 2,200 1,097 1,065 191 156 209 182 60 63 67 59 Expenditure per trip per day £ Expenditure per person per day £ Source: Quantitative Survey Q.19b £100=CAD$204.99 (Bank of Canada exchange rate – Nov 28, 2007) 19b What was the total cost of that trip in British Pounds to (DESTINATION IN Q. 8a for you and your immediate travel party, including airfare and all other costs? [ACCEPT ONE ANSWER ONLY] Page 117 4.19 Value for Money Canada receives a very good value for money rating. However, there is little difference from other destinations. Exhibit Section 4-19: Value for Money Percent Among Travellers Visiting Each Destination Value Rating Excellent Value 39% 34% 40% 36% 40% 37% 38% 32% 40% 38% 19% 6% 23% 5% 24% 4% 19% 5% 18% 5% Total Past 3 Years Traveller Asia Australia U.S. Canada 75% 72% 72% Very Good Value Good Value Fair/Poor Value Top Two Boxes Excellent/Very Good 76% 78% Source: Quantitative Survey Q19c Q.19c Overall, how would you rate that trip on value for money? Page 118 4.20 Likelihood to Recommend Destination to Other Nine in ten would recommend Canada to others, confirming solid trip satisfaction. However, again, this is not atypical of other destinations traveled to. Exhibit Section 4-20: Likelihood to Recommend Destination to Others Percent Among Travellers Visiting Each Destination Likelihood to Recommend Definitely will 56% 56% 63% 56% 58% Very likely Somewhat likely Not very/at all/definitely not 32% 32% 26% 33% 30% 10% 2% 10% 2% 9% 2% 10% 1% 9% 3% Total Past 3 Years Traveller Asia Australia U.S. Canada 87% 88% 89% Top Two Boxes Definitely/very likely 89% 88% Source: Quantitative Survey Q19d Q. 19d How likely are you to recommend that destination to others? Page 119 Section 5: Market Segmentation Page 120 5.1 Segmentation Analysis Assisted by grassroots learning from the preliminary focus groups, a multidimensional rating question was created for the quantitative survey. A modified Howard-Harris cluster analysis method was used to generate a number of segment solutions (2 to 8 groups). These segment solutions were examined in detail to determine the final segment solution of 5 groups, which most simply explained the targets’ attitudes. They are named and described based on the attitudes associated with the membership of the segments. Each of these segments is discussed in detail in the next section. Exhibit Section 5-1: Size of Market Segment Culture Seekers Resort-Style 23% 21% Relaxation 22% 13% Nature Participation 21% Nature Viewing Source: Quantitative Survey Q.201 1 Base= Past/Future Travellers (n=2,697) Q.20 Please imagine that you are taking an overseas pleasure trip beyond the European Union countries, North Africa and the Mediterranean for 3 nights or longer with at least one night in paid accommodation. For each statement on this page check one box to show how important that reason is to you when considering such a trip. Page 121 5.2 Segment Characteristics Resort-Style (23%) This segment is family vacation oriented and wanting a wide selection of activities, particularly sun and beach. Culture Seekers (22%) Observing the country’s unique culture is a dominant interest here—especially museums, galleries, historical sites, entertainment and nightlife and local cuisine. Relaxation (21%) Rest and Relaxation is the common bond here. Nature Viewing (21%) Being in a clean, healthy and spacious environment, surrounded by beautiful nature and observing wildlife, but all within reach from an urban environment appeals to this group Nature Participation (13%) This group is not satisfied with visual stimuli. They want to get involved. Soft adventure prevails. Page 122 5.2 Segment Characteristics Exhibit Section 5-2: Segment Characteristics Nature Viewing Segment Attitudinal Drivers - Surrounded by beautiful unspoiled nature - Experiencing unspoiled nature - Seeing wildlife in nature - Experiencing a wide, spacious outdoor environment - Experiencing a different country’s healthy lifestyle - Enjoying the convenience of the modern world while experiencing nature Nature Participation Culture Seekers - Enjoying alpine - Visiting - - - - (downhill) skiing or snowboarding Participate in active outdoor sports Staying in accommodations unique to that country Roughing it Experiencing aboriginal culture - - museums or art galleries Visiting historical attractions Experiencing a modern culture Attending theatres, clubs or shows Seeing as much as possible in the time available Meeting and interacting with local people Visiting a local supermarket Spending time in the home of a resident Opportunity to try different cuisines Resort Style - Sunbathing or Relaxation other beach activities - Staying at luxury surroundings - Bringing the family together - Availability of a wide selection of activities - Enjoying a - - - relaxing atmosphere Feeling secure and safe Getting away/escaping from the demand of home Being in a clean, healthy environment Visiting a place my friends would love to see Coming home with exciting travel stories Page 123 5.2 Segment Characteristics Resort Style • Young families dominate Culture Seekers • Often older Empty Nestors Relaxation • Relatively young and with families Nature Viewing • Over 40 and Empty Nestors Nature Participation • Definitely under 40, often under 30 Page 124 5.2 Segment Characteristics Profile Skews Gender Male Female Marital Status Age 18 to 29 30 to 39 40 to 49 50-59 60+ Household Income (annual gross £) Under £20,000 £20,000 - <£25,000 £25,000 - <£30,000 £30,000 - <£40,000 £40,000 - <£50,000 £50,000+ Recent Trip Expenditure (£) Under £2,000 £2,000 - <£4,000 £4,000 - <£6,000 £6,000 - <£8,000 £8,000+ Average (£ UK Pounds) Nature Viewing Nature Participation Culture Seekers ResortStyle Relaxation 50 50 Married with no young children at home 58 42 Mixed of married/living together and singles 45 55 Mixed of married and singles/ divorced/ widowed with no young children at home 45 55 Married with children 52 48 Married with children 11 16 22 19 32 35 22 18 13 12 13 20 18 16 33 29 28 20 10 13 23 27 18 19 13 16 13 10 15 17 17 16 12 14 17 9 15 24 11 11 17 9 16 14 9 9 18 12 23 13 13 13 16 15 16 32 32 18 8 10 3,600 38 30 20 7 6 3,300 44 29 14 5 8 3,200 32 34 16 8 10 3,700 36 34 16 8 6 3,200 Page 125 5.3 Current Plans to Visit Canada Nature Viewing and Nature Participation segments are the two key targets for Canada along with Culture Seekers, based on interest and past experience. Exhibit Section 5-3: Current Plans to Visit Canada – by Segment 44% 39% 38% 33% 29% 17% 14% 20% 17% 12% 11% 8% 12% 8% 6% Nature Viewing Nature Participation Culture Seekers Resort-Style Relaxation Very interested in visiting Canada in next 2 years Definitely/Very likely to visit Canada in next 12 months Visited in past 3 years Source: Quantitative Survey Q.7, 22, 231 1 Base=Past/Future Travellers (n=2,697) Q.7 (ASK THOSE WHO ANSWERED 1+ IN Q.4, OTHERS SKIP TO Q.20) (ONCE MAIN SAMPLE IS COMPLETED AND ONLY LOOKING FOR AUGMENT SAMPLE TERMINATE IF NONE IN Q.4 ) During the past 3 years which of these countries or destinations outside U.K. did you visit for pleasure and stayed for 3 nights or longer with at least one night in paid accommodation, if any? Q.22 How interested are you in visiting United States, Canada, Australia or South East Asia in the next two years? Q.23 How likely are you to visit (SHOW COUNTRIES WITH CODES 4 OR 3 IN Q.22 ) in the next twelve months? Page 126 5.4 Ideal Trip to Canada by Segment Here is the ideal Canadian trip for each of the 3 key target segments: Nature Viewing This segment wants a wide and varied nature viewing experience in Canada— including seeing rivers and waterfalls, wilderness areas and observing wildlife. They like the notion of staying in resorts close to nature (in particular lakeside and/or mountain resorts), but also express significant interest in authentic cabins or lodges. April to September is the preferred season, 15 nights the ideal duration. Key provinces of interest include BC and Ontario, but a significant minority would also like to see Quebec, Alberta and Atlantic Canada. Nature Participation As a younger group, these individuals show particular interest in outdoor activity—canoeing, kayaking, cycling, dog sledding, snowmobiling and serious skiing. Less interested in city hotels, this group prefers mountain or lakeside resorts. April to September the best months, 15 nights the ideal duration, BC and Ontario are the preferred provinces to visit. Culture Seekers Often empty nesters, this segment wants to see Canadian culture — taking city tours, seeing old architecture, museums and art galleries and getting to know local inhabitants. While seeing Niagara Falls and the Rockies are very high on the agenda, active involvement in nature holds little appeal. April to September is the preferred months of travel, 15 nights in duration, B.C., Ontario and Quebec all desirable destinations. Page 127 5.4 Ideal Trip to Canada Exhibit Section 5-4: Ideal Trip to Canada – by Segment Nature Viewing (610) % Ideal Next Trip Season January-March April-June July-September October-December Duration # of nights (avg) Provinces Likely to Visit B.C. Ontario Quebec Alberta Nova Scotia Newfoundland and Labrador North West Territories Yukon Saskatchewan PEI Manitoba New Brunswick Nunavut Would Also Visit Overnight or Longer U.S.A Other countries Canada only Type of Tour Group Tour Prefer: All days organized Many free days FIT (non-group) Prefer: Package Non-Package Among Those Very/Somewhat Interested in Visiting Canada in Next 2 Years Nature Culture ResortRelaxation Participation Seekers Style (326) (551) (494) (479) % % % % 6 31 52 11 13 30 45 12 4 32 47 17 11 26 46 17 8 23 54 15 15.0 14.8 14.5 14.2 13.9 66 59 35 33 21 14 13 13 8 11 6 7 5 59 54 35 31 22 20 21 16 10 12 12 13 8 60 63 44 33 16 14 11 9 9 11 6 6 5 60 63 40 26 11 12 7 7 7 6 3 3 4 60 61 35 22 14 10 6 5 4 8 4 5 2 44 10 51 46 17 43 48 11 47 48 11 49 47 10 50 15 7 8 85 29 56 14 7 7 86 28 58 17 8 9 83 27 56 9 3 5 91 46 45 11 5 6 89 49 40 Source: Quantitative Survey Q.25 Q.25 Thinking about your next trip to Canada, if you were to go, describe your ideal trip Page 128 5.4 Ideal Trip to Canada Among Those Very/Somewhat Interested in Visiting Canada in Next 2 Years Transportation Between Centres Air Rail Rental car Motor coach Private car Motor home/camper Accommodation City hotel Mountain resort Lakeside resort Seaside resort Authentic wilderness cabin or lodge Bed and Breakfast Home of friend or relative Ski resort On a ranch Coastal cruise ship Canadian Spa Caravan/motor home On a farm Camping Nature Viewing (610) % Nature Participation (326) % Culture Seekers (551) % ResortStyle (494) % Relaxation 70 75 63 33 22 24 69 68 61 35 27 33 70 75 57 37 24 16 73 63 68 25 26 17 74 64 64 30 26 16 32 40 44 11 22 21 42 33 13 25 48 31 34 13 14 42 41 32 24 15 44 37 33 26 10 18 9 4 11 12 4 7 5 2 19 14 14 9 6 9 9 5 6 20 16 3 6 7 6 4 3 2 10 10 16 8 5 5 4 2 1 10 9 10 5 6 6 2 1 1 *Less than 0.5% Page 129 (479) % 5.4 Ideal Trip to Canada Among Those Very/Somewhat Interested in Visiting Canada in Next 2 Years Nature Viewing (610) % Nature Participation (326) % Culture Seekers (551) % Resort -Style (494) % Relaxation 96 93 94 88 84 81 94 88 81 85 82 69 83 80 72 90 84 87 82 68 78 82 64 92 86 73 71 69 69 64 71 67 72 63 68 69 76 58 65 85 76 71 70 70 64 76 79 77 73 80 70 62 74 70 63 70 72 57 65 81 82 81 63 68 86 60 62 57 54 60 48 51 57 57 55 53 60 54 47 55 65 54 43 54 60 53 54 57 49 48 70 56 67 63 64 69 43 53 46 58 57 45 44 36 53 50 50 46 38 36 54 42 29 37 48 41 38 38 53 49 34 40 35 39 44 34 40 37 40 36 (479) % Activities Viewing rivers or waterfalls Viewing mountains Observing wildlife in their natural environment Visiting places of historical interest Visiting small towns Visiting wilderness areas Seeing beautiful beaches and coastlines Taking city tours Experiencing French Canadian culture and cuisine Getting to know the local inhabitants Visiting world heritage sites Seeing old architecture Whale watching Taking nature tours Visiting museums or art galleries Viewing Aurora Borealis (Northern Lights) Taking a rail tour Attending festivals or fairs Attending theatres, clubs or shows Seeing modern architecture Trekking in a nature area Aboriginal cultural experiences, celebrations, and attractions Viewing autumn leaves Taking a wine/culinary tour Visiting a spa Taking a cruise Page 130 5.4 Ideal Trip to Canada Among Those Very/Somewhat Interested in Visiting Canada in Next 2 Years Nature Viewing (610) % Nature Participation (326) % Culture Seekers (551) % Resort -Style (494) % Relaxation 31 30 28 37 25 25 19 22 10 9 7 11 6 4 41 47 38 30 55 44 44 41 45 24 33 21 17 22 37 26 29 40 16 23 15 16 11 14 7 6 7 6 32 34 31 19 30 29 34 28 32 21 18 12 13 7 32 27 26 24 22 23 22 19 20 26 12 12 14 8 (479) % Activities Visiting friends or relatives Trail riding on horseback Attending rodeos Taking a garden or flower tour Canoeing/kayaking/boating Dog sledding Snowmobiling Cycling Downhill skiing or snowboarding Visiting casinos Heli/cat skiing Sports fishing Golfing Hunting Source: Quantitative Survey Q.25 Q.25 Thinking about your next trip to Canada, if you were to go, describe your ideal trip Page 131 Section 6: Travellers Profile Page 132 6.1 Trip Frequency The British traveller took 6.1 trips outside their country during the past 3 years, about 4 in 10 long-haul (2.5). Exhibit Section 6-1: Number of Trips Taken in Past 3 Years Among Past 3 Years Travellers Trips Outside Country Long-Haul Trips 6.1 2.5 Source: Quantitative Survey Q3c, Q41 1 Base= past 3 year travellers (n=2,232) Q.3c In the past three years, that is since September, 2004, how many times have you, yourself, taken a pleasure trip outside of your home country for 3 nights or longer with at least one night in paid accommodation. Please include all trips for pleasure or personal reasons, to visit friends and relatives and trips where you combined business with a pleasure trip. Please exclude any trips that were for business purposes only, or for study purposes only. Q.4 In the past three years, that is since September, 2004, how many times have you, yourself, taken a pleasure trip beyond the European Union countries, North Africa and the Mediterranean for 3 nights or longer with at least one night in paid accommodation? Again, please include all trips for pleasure or personal reasons, to visit friends and relatives and trips where you combined business with a pleasure trip. Please exclude any trips that were for business purposes only, or for study purposes only. Page 133 6.2 U.K. Long-haul Travel Market Profile The age of the Canadian visitors is considerably younger than in 1997 (44 years vs. 51 years average). However, they are still somewhat older than visitors from other countries. Four in ten (41%) are age 50+, compared to 25% for France and 24% among German visitors. As many as 58% have close friends or relatives in Canada. This is a very high level and is a reminder of the influence those individuals must have in the decision process, discussed in more detail later. However, in 1997, a full 74% of recent visitors to Canada had friends or relatives here. This talks to how the market is broadening out over time including more purely pleasure driven trips. Exhibit Section 6-2: UK Long-haul Market Profile Age 18 – 29 30 – 39 40 – 49 50 – 59 60+ Average age Gender Male Female City South East Greater London South West North West/Merseyside Scotland West Midlands Yorkshire/Humberside East Midlands North East Wales Eastern Close friends/relatives in Canada Yes No Percent Among Travellers Visiting Each Asia Australia U.S. Canada (382) (165) (832) (884) % % % % 31 20 15 13 22 41.7 25 20 15 12 28 43.8 19 25 21 14 20 43.6 19 24 17 22 19 44.1 52 48 45 55 53 47 45 55 55% 45% 18 20 13 9 6 9 6 5 5 5 5 25 20 11 4 7 7 9 5 6 2 4 19 13 9 12 12 9 6 8 5 4 3 22 13 9 9 14 6 6 8 4 5 4 Canada 1997 30 68 35 64 29 69 58 42 Canada 1997 51.0 74% 26% Page 134 6.2 U.K. Long-haul Travel Market Profile Percent Among Travellers Visiting Each Asia Australia U.S. Canada (382) (165) (832) (884) % % % % Marital Status Canada 1997 Married/living with someone 69 63 69 73 61% Single 22 21 21 19 23% Divorced/widowed/separated 9 16 10 8 16% Adults only 64 65 68 70 78% With children<18 36 35 32 30 22% 65 59 65 63 70% Semi or unskilled manual worker 4 5 5 3 Skilled manual worker 6 6 5 5 Supervisory or clerical / junior managerial / professional / administrative 19 19 23 20 Intermediate managerial / professional / administrative 18 13 18 21 Higher managerial / professional / administrative 8 7 5 7 Self employed 6 5 6 6 Employed part-time 4 5 4 3 Student 9 6 7 6 Housewife/husband 6 9 6 5 Retired/semi-retired 19 23 19 20 Other * 1 1 1 Household Composition Occupation Total employed * Less than 0.5% Page 135 6.2 U.K. Long-haul Travel Market Profile Percent Among Travelled on FIT Package Asia Australia U.S. Canada (382) (165) (832) (884) % % % % Education Less than secondary/secondary school 13 16 19 17 A levels/Scottish highers/GNVQ/BTEC 28 31 34 31 Undergraduate degree or equivalent 35 41 28 32 Post graduate degree or equivalent 23 12 18 19 Under £20,000 15 11 14 14 £20,000 - <£25,000 10 8 11 8 £25,000 - <£30,000 13 14 10 10 £30,000 - <£40,000 18 19 18 16 £40,000 - <£50,000 10 11 13 13 £50,000+ 19 21 21 21 Household Income (annual gross £) Source: Quantitative Survey Q.1,2,3a,28-34 (basic data) CAD Equivalent (Bank of Canada exchange rate, November 28, 2007) <£20,000 = <$40,998 CAD £20,000 - <£25,000 = $40,998 £25,000 - <£30,000 = $51,248 £30,000 - <£40,000 = $61,497 £40,000 - <£50,000 = $81,996 £50,000+ = $102,495+ CAD - <$51,248 CAD <$61,497 CAD <$81,996 CAD <$102,495 CAD Page 136 Section 7: The Canadian Opportunity Page 137 7.1 Aspirational Destinations Canada ranks 3rd as a near term destination priority for British long-haul travellers. The U.S. ranks 1st which clarifies that America as a significant competitor, as is Australia (ranking 2nd). Exhibit Section 7-1: Long-Haul Destination Priority Rank 1 United States 2 Australia 3 Canada 4 Caribbean 5 New Zealand Source: Quantitative Survey Q61 1 Base=Past/Future Travellers (n=2,697) Thinking of future travel beyond the European Union countries, North Africa and the 6a Mediterranean, what countries would you be likely to visit on a pleasure trip for 3 nights or longer with at least one night in paid accommodation in the next two years? Please include all trips for pleasure or personal reasons, to visit friends and relatives and trips where you combined business with a pleasure trip. Please exclude any trips that were for business purposes only, or for study purposes only. (Please select your most likely choices with up to 5 countries from the list below or write in your choices if not listed) (PN: LIST FROM Q.7 WITH CODES 14-31, 46-50, 52 SUPPRESSED) 6b From the countries you selected please rank those countries starting with the one you would likely to visit first, then second, third and so on. (PROGRAMMING: SHOW Up to 5 DESTINATIONS SELECTED IN 6a)(If only one selected in Q6a skip to Q7) Page 138 7.2 Priority Analysis – by Segment While Canada ranks 3rd overall, it is higher among certain sectors—namely repeat travellers (1st), and those with friends and relatives in Canada (2nd). Exhibit Section 7-2: Canada’s Priority Ranking Key Segment Canada’s Priority Ranking # 3rd Total Gender Male 3rd Female 4th Age 18 – 29 4th 30 – 39 3rd 40 – 49 4th 50 – 59 2nd 60+ 3rd Travelled to Canada in Past 3 Years 1st Friends and Relatives in Canada Yes 2nd No 4th Source: Quantitative Survey Q.6b *Note: due to the complexity of the ranking calculation (countries mentioned and ranking of each based on average scores) it is possible that rankings among subsamples can all be slightly higher or lower than the overall rank due to numerical rounding. Q. 6b From the countries you selected please rank those countries starting with the one you would likely to visit first, then second, third and so on. Page 139 7.3 Ideal Trip to Canada For those seriously considering Canada as a future destination, their ideal trip would look like this: Season: Likely April to September Duration in Canada: 2 weeks Type of trip: FIT Many also visit: The U.S. (47%) Intercity: Rail is exceptionally popular as an intercity mode (likely reflecting the high interest in The Rocky Mountaineer). Car rental and air are also appealing. Accommodation: Canadian resorts (mountain or lakeside) and/or city hotels. Activities: Prospective British visitors have a very active to do list—including viewing rivers, waterfalls, mountains and wildlife, historical sites, smaller towns and getting to know local inhabitants. Page 140 7.3 Ideal Trip to Canada Exhibit Section 7-3: Ideal Trip to Canada – By Prospective Market Percent Among Prospective Market* (1152) % Ideal Next Trip Season January – March April – June July – September October – December Duration # of nights (avg.) Provinces Likely to Visit B.C. Ontario Quebec Alberta Nova Scotia Newfoundland and Labrador Northwest Territories Yukon Saskatchewan PEI Manitoba New Brunswick Nunavut Would also visit overnight or longer U.S.A Other countries Canada only Type of tour Group tour Prefer: All days organized Many free days FIT (non-group) Prefer: Package Non-package 10 28 47 15 14.8 63 58 38 34 18 14 12 11 10 10 7 7 6 47 13 47 13 5 8 88 33 55 Page 141 7.3 Ideal Trip to Canada Percent Among Prospective Market* (1152) % Transportation Between Centres Air Rail Rental car Motor coach Private car Motor home/camper Accommodation Mountain resort City hotel Lakeside resort Seaside resort Authentic wilderness cabin or lodge Home of friend or relative Bed and breakfast Ski resort On a ranch Canadian spa Coastal cruise ship Caravan/motor home On a farm Camping 69 67 64 31 29 21 40 35 34 16 16 16 15 11 8 6 6 5 3 2 Page 142 7.3 Ideal Trip to Canada Activities Viewing rivers or waterfalls Viewing mountains Visiting places of historical interest Visiting small towns Observing wildlife in their natural environment Visiting wilderness areas Getting to know the local inhabitants Taking city tours Seeing beautiful beaches and coastlines Visiting world heritage sites Experiencing French Canadian culture and cuisine Seeing old architecture Taking nature tours Visiting museums or art galleries Whale watching Attending festivals or fairs Taking a rail tour Viewing Aurora Borealis (Northern Lights) Seeing modern architecture Trekking in a nature area Attending theatres, clubs or shows Aboriginal cultural experiences, celebrations, and attractions Viewing autumn leaves Taking a wine/culinary tour Visiting friends or relatives Visiting a spa Taking a cruise Trail riding on horseback Taking a garden or flower tour Canoeing/kayaking/boating Dog sledding Percent Among Prospective Market* (1152) % 90 85 79 79 78 75 73 72 71 71 70 68 66 64 62 58 58 57 55 53 53 50 48 44 40 37 37 35 31 30 30 Page 143 7.3 Ideal Trip to Canada Activities Attending rodeos Snowmobiling Cycling Downhill skiing or snowboarding Visiting casinos Heli/cat skiing Sports fishing Hunting Golfing Percent Among Prospective Market* (1152) % 30 28 26 25 17 15 14 12 11 Source: Quantitative Survey Q.24 Q.25 Thinking about your next trip to Canada, if you were to go, describe your ideal trip *Very interested in visiting Canada in next 2 years. Page 144 Section 8: The Buy Cycle Model Page 145 8.1 a) The Buy Cycle Model – U.K. How it Works • The Buy Cycle Model was developed by Insignia during three separate tourism studies in China, Taiwan and South Korea examining in a real life environment the step by step planning process. The Buy Cycle was then subsequently evaluated in 18 focus groups in Europe--the U.K., France and Germany. Those discussions further validated that this is the way people think. Finally, Insignia built a quantitative question into the 3 studies to measure where people are on the Buy Cycle path and where the barriers are. The findings confirm the focus group learning and direct us toward the importance of helping prospects build their own "movie". Page 146 8.1 a) The Buy Cycle Model – U.K. How it Works • The model is described below: Exhibit Section 8-1: Buy Cycle Model – how it works Step1—AWARE: You first hear about the destination—often in school. Step 2—ON DREAM LIST: It becomes a destination that you dream about going to some day in the future, not necessarily in the immediate future. Step 3—ON SERIOU.S.LY CONSIDERING LIST: Seriously considering in next 2 years. Step 4—CREATING A “VACATION MOVIE”: Started to gather information about Canada from various sources – friends, the internet, articles, brochures. This is where you really start your serious investigation. Trying to get an idea of specifically what you would be doing during the day, in the evening, whether there will be enough to do, reassuring yourself that this will be a truly memorable experience. In short, creating a movie in your head. Step 5—DETAILED ITINERARY PLANNING: Currently planning the details of my itinerary to Canada. Step 6—FINALIZING FLIGHT/LAND ARRANGEMENTS: In the process of working out the details of flight and land arrangements to Canada. Step 7—PURCHASE: • The prospect has already booked. Page 147 8.1 b) The Buy Cycle Model – U.K. Buy Cycle Influencers - General • The key influencers that drive prospective travellers to each stage are outlined below: Step 1 – First Aware • Awareness generally starts early in life for traditional destinations, usually in school. For relatively new prospective travel countries (e.g., Dubai), television travel shows or news coverage can create the initial awareness. Step 2 – Getting on the Dream List • • There are a number of factors that get a destination on the “Dream List”. Clearly, it is one (or a few) icons in that country that drives initial appeal. • “I really want to see the Terracotta Warriors” (China) • “The Rockies” (Canada) • “The Great Barrier Reef” (Australia) • “Go on Safari” (Africa) • “The magic of New York City” (U.S.A.) Common influencers to get a destination on the “Dream List” include: • TV shows • Friends who have been there • Feature films Page 148 8.1 The Buy Cycle Model – U.K. Step 3 – Getting on the Serious Consider List At this stage the dream has moved into the near term reality stage. This can be stimulated by: • Finances – I’ve got the money now to take a long-haul trip • Time – I have the time available • Friends are raving about the place from a previous visit • Pressure from family and friends at the destination to come and visit • Aging – must see the country before my health does not permit it The persuasion of friends often creates peer pressure to conform. Further, travel is important as status and to visit an uncommon destination first creates bragging rights. Step 4 – Creating a Detailed “Movie” At this stage, prospects start to create a “movie” in their heads about what the trip could be like: • Friends who have been there (highly influential) • The internet (a multitude of site checks) • Brochures from travel agents (to get itinerary ideas, not necessarily to purchase) • Friends and relatives at the destination • Magazine articles • Television shows Page 149 8.1 The Buy Cycle Model – U.K. Step 5 –Detailed Itinerary Planning • The internet is the key source to organize the itinerary, as well as agent brochures. Step 6 – Finalizing Flight/Land Arrangements • Often on the net, but many are agents. Step 7 – Purchased • The trip is now sold. Page 150 8.1 c) The Buy Cycle Model – U.K. Buy Cycle Influencers - Canada • The process is fundamentally similar for Canada. Step 1 – First Aware • Typically learned about Canada in school. Step 2 – Getting on the Dream List • • Usually a desire to see the Rockies and, for many, Niagara Falls, to feel the vastness, clean and peaceful environment. • “I saw the Rocky Mountaineer train on a television programme.” • “I carry this picture of a home in Nanaimo on a lake. It looks like a peaceful place. There is so much to see” As discussed later, very important learning here is that the powerful desire to visit Canada is driven typically by a nature iconic image and the “movie” at this stage does not constitute a full or balanced concept of a viable vacation. There are still many unknowns about what else there is to do and places to stay. Step 3 – Getting on the Serious Consider List For those who have advanced beyond the dream stage, the drivers are usually: • Ads that communicate affordability (e.g., Zoom ads). • These budget airline ads are very important in bringing the destination closer perceptually. • • “It feel within reach” A desire to go there before health deteriorates (a finding which supports the popularity of Canada among the age 50+). Page 151 8.1 The Buy Cycle Model – U.K. • Friends who have been there raving about the beauty plus the English speaking factor, it is more sophisticated than expected, the good exchange rate (purchasing power). • They have visited other priority destinations (particularly America) and it is now time for Canada. Step 4 – Creating a Detailed “Movie” • “I saw myself sightseeing in the cities and seeing the lakes” • “The movie became exciting when I could see we would be enjoying ourselves” • “Collected brochures” • “Began to design an itinerary” • “Went to the library to get books” • “The internet” Page 152 8.1 d) The Buy Cycle Model – U.K. Bottlenecks and Barriers – Canada • The chart below illustrates how far the long-haul travel market has advanced along the Buy Cycle path for a trip to Canada. Exhibit Section 8-2: Buy Cycle Model – Bottlenecks and Barriers - Canada Step1—AWARE: 100% Undoubtedly, virtually all will have heard of Canada. Step 2—ON DREAM LIST: 96% Virtually all British dream about visiting Canada some day. Step 3—ON SERIOU.S.LY CONSIDERING LIST: 44% Step 4—CREATING A “VACATION MOVIE”: 16% Step 5—DETAILED ITINERARY PLANNING: 4% Step 6—FINALIZING FLIGHT/LAND ARRANGEMENTS: 1% Step 7—PURCHASE: 1% Still a very large prospect base – over 4 in 10 claiming to be seriously considering Canada in the next 2 years. Here is the major bottleneck. Only 16% have advanced to the stage of researching a Canadian trip – creating their personal vacation “movie”. As many as 28% are “stuck” at the serious consider stage. These prospects have now moved to the detailed itinerary stage. Í These will likely follow through. These will likely follow through A small percentage in comparison to the potential at stages 2 and 3. Page 153 8.1 e) The Buy Cycle Model – U.K. Projected Market Size • There are 27.5 million potential long-haul travellers in the U.K. out of a population of 47,634,000 age 18 and over. Exhibit Section 8-3: Buy Cycle Model – Projected Market Size Step1—AWARE: 27,485,000 Assumes all heard of Canada. Step 2—ON DREAM LIST: 26,304,000 Almost all British long-haul travellers dream about visiting Canada. Step 3—ON SERIOU.S.LY CONSIDERING LIST: 12,109,000 As many as 12.1 million are at the serious consider stage for the next 2 years. Step 4—CREATING A “VACATION MOVIE”: 4,421,000 A full 7.7 million have not advanced to Stage 4 – a huge blockage. Step 5—DETAILED ITINERARY PLANNING: 1,002,000 These individuals have advanced and will likely follow through. Step 6—FINALIZING FLIGHT/LAND ARRANGEMENTS: Step 7—PURCHASE: 357,000 206,000 These individuals will likely follow through. Booked at time of survey. Page 154 8.1 The Buy Cycle Model – U.K. Implications The Partners need to focus more on Stage 4 – helping serious prospects create their personal Canadian vacation movie, rather than building initial awareness, (Stage 1), getting Canada on the Dream List (Stage 2) or even on the Serious Consider List (Stage 3). Access to Detail To create a “movie”, prospects need access to detail – especially itinerary ideas. • Given the importance of the internet they must be strongly encouraged to visit the most appropriate Canadian websites. • Once on these sites they need help in creating itinerary ideas. • Then, to elaborate on key attractions and locations on route, short video clips can work very effectively, as well as any other descriptive material that will aid the prospect in visualizing him/herself in the scene having a wonderful time. • Blogs from past visitors are also welcome, as long as they are trustworthy as legitimate experiences by real travellers. Viral Marketing • Friends, especially previous visitors or residents are so highly influential that the Partners need to seriously explore viral marketing ideas. • Ways must be developed to encourage friends or past visitors to “spread the word”. Itinerary Ideas • One of the reasons agent/operator brochures are popular sources of “movie” planning is because they provide itinerary ideas and help the prospects get their heads around their personal vacation concept. Consequently, advertising can focus on promising “brilliant” itinerary ideas on the Partners’ websites. Page 155 8.1 The Buy Cycle Model – U.K. Fighting Procrastination • Facilitating personal “movie” creation helps the prospective visitor to stimulate themselves and drive them toward moving on their dream. • However, industry advertising for low cost flights also helps to communicate viability (“Canada seems so much closer when the fare is so low”), as do ads featuring time specific special events. • Procrastination is Canada’s worst enemy. Helping prospective visitors generate their own excitement is the best route to stimulating near term travel. Page 156 Section 9: Regional Opportunities Page 157 9.1 Places Visited in Canada Ontario and British Columbia were the most popular provinces to visit by Brits (by 51% and 44%, respectively) on their last trip. Alberta and Quebec also generated solid traffic (31% and 24% respectively). Atlantic Canada attracted 13%. Cross-Canada travel, though, appealed to only 20% while the majority focused on only one region (east or west). Exhibit Section 9-1: Places Visited in Canada Both Western and Eastern Canada:* 20% West only: 33% East only: 47% Yukon North West 5% Territories Nunavut 4% 3% British Columbia Manitoba 44% Alberta 5% Ontario 31% 51% Saskatchewan 6% Atlantic Canada 13% Quebec 24% Nova Scotia: 9% Newfoundland: 5% PEI: 7% New Brunswick: 5% Source: Quantitative Survey Q.8b1 1 Base = Past 3 years travellers to Canada (n=884) Q. 8b IF CANADA IN Q. 8a) ASK) While you were in Canada on that trip, which of the following places did you visit, if any? *Eastern Canada includes Ontario, Quebec and Atlantic Canada Western Canada includes Manitoba, Saskatchewan, Alberta, British Columbia Page 158 9.2 Provinces Visited in Canada — Trends In the past 10 years, Western Canada has become far more popular than in 1997. Exhibit Section 9-2: Provinces visited trends 1997 2007 % % Ontario 58 51 British Columbia 29 44 Quebec 25 24 Alberta 22 31 Newfoundland 5 5 Manitoba 1 5 Provinces Visited Most Recent Trip Page 159 9.3 Duration – By Province Ontario captured an average of 5.1 nights of the 12.9 spent in Canada, ahead of British Columbia (3.5 nights) and Alberta (1.9 nights) and each of the other regions. Exhibit Section 9-3: Number of Nights Spent in Each Province Among Past 3 Years Travellers to Canada Ontario 5.1 B.C. 3.5 Alberta Quebec Other 1.9 0.9 1.4 Total # of nights in Canada 12.9 Source: Quantitative Survey Q.10d1 1 Base= n=884 Q. 10d (IF CANADA IN Q. 8a) ASK (ONLY LIST PLACES VISITED IN Q. 8b) How many nights did you spend in each area on that trip? Page 160 9.4 Trip Characteristics British Columbia Among UK travellers visiting British Columbia, half also ventured into Alberta, one-quarter the Yukon, but only 4 in 10 Eastern Canada on the same trip. Time in Canada averaged 20 nights, 8 of which were in British Columbia. Other trip characteristics: • Season – April to September. • FIT – 84% FIT, as many as 54% no package. • Accommodation—Mid-priced hotels/motels most common, followed by resort hotels and the home of friends/relatives. • Purpose of Trip--Beyond nature, visitors wanted to see new places, experience the local culture and relax and unwind, often with local friends or relatives. Alberta Visits to Alberta are usually in conjunction with a BC visit (78%), but only in a minority of cases Eastern Canada (37%). As with BC, most UK residents are focused on one region, not a cross Canada trip. Alberta captures 6.4 nights out of a 15.1 nights in Canada. Other trip characteristics: • Season – April to September preferred • FIT – 79% FIT, 52% no package. • Accommodation – resorts and mid-price city hotels dominate on the trip. • Purpose of trip – very similar to B.C. Beyond nature, visitors wanted to see new places, experience the local culture and relax and unwind, often with local friends or relatives. Page 161 9.4 Trip Characteristics Ontario UK visitors to Ontario spent most of their time within the province—as many as 9 out of 13 nights in Canada on average. Only 30% also visited Western Canada and only 33% Quebec. Further, only 10% of Ontario visitors spend less than 5 nights away from home, so the incidence of weekend trips to Toronto at this point will be quite low. Other trip characteristics: • Season – Spring and Summer most common. • FIT – 86% FIT, as many as 62% no package. • Accommodation – Mid-priced city hotels/motels most popular commercial accommodation. • Purpose of trip – Enjoying nature, but also experiencing the Canadian way of life – seeing new places, visiting and socializing with friends/relatives and enjoying the culture. Atlantic Canada Many UK visitors to Atlantic Canada are on an extensive cross-Canada trip –47% visiting Western Canada, 49% Ontario and 47% Quebec on the same journey. Atlantic Canada, however, does captures 6 nights out of a total of 13 nights in Canada on average. Other trip characteristics: • Season – April to September. • FIT – 94% FIT, groups only 6%. • Accommodation – A mix of hotels/motels at different price levels and B&B’s are common commercial properties. • Purpose of trip – Experiencing local culture and interacting with locals is very important. However, seeing beautiful nature as well as regional history are also popular. Page 162 9.4 Trip Characteristics Exhibit Section 9-4: Trip Characteristics – Among those Who visited B.C., Alberta, Ontario and Atlantic on Most Recent Canadian Trip Visited on Recent Canadian Trip British Columbia Alberta Ontario Atlantic (401) (281) (490) (102) % % % % Other Canadian Regions Visited Western Canada (net) British Columbia Alberta Saskatchewan Manitoba 100 100 54 11 9 100 78 100 18 11 30 26 18 6 7 47 45 28 16 17 Yukon/NWT/Nunavut Eastern Canada (net) Ontario Quebec Atlantic Nova Scotia Newfoundland/Labrador PEI New Brunswick Duration (Avg) Total nights on trip Nights in Canada Nights in province Month of Travel January-March April-June July-September October-December FIT vs. Group Total FIT FIT – benefit package FIT – no package Total Group 23 38 33 19 13 9 8 8 6 26 37 34 20 11 10 8 9 7 13 100 100 34 11 8 6 6 6 59 100 49 47 100 74 41 52 43 19.7 14.7 8.0 19.7 15.1 6.4 18.9 13.1 9.0 22.1 13.3 5.9 14 32 45 10 11 30 47 12 10 29 44 17 13 29 45 13 84 30 54 16 79 28 52 21 86 23 62 14 94 46 46 6 Page 163 9.4 Trip Characteristics Visited on Recent Canadian Trip British Alberta Ontario Atlantic Columbia (401) (281) (490) (102) % % % % Type of Accommodation Mid-priced city hotel/motel Resort hotel Home of friend or relative Luxury city hotel Budget city hotel Bed and breakfast Cottage/cabin On a cruise ship Authentic wilderness lodge Guest ranch Camping On a farm Caravan/motor home Other Trip Expenditure Under £2,000 £2,000-<£4,000 £4,000-<£6,000 £6,000-<£8,000 £8,000+ Mean (£ UK Pound) Value for Money Excellent value Very good value Good value Fair value Poor value Recommended to Others Definitely will Very likely Somewhat likely Not likely 48 30 29 24 14 13 9 11 4 3 4 2 4 6 49 39 27 25 13 14 10 10 5 4 2 2 4 7 56 13 36 24 16 10 6 3 1 2 1 1 2 5 44 17 28 27 13 22 9 10 2 6 6 4 8 5 27 28 22 14 10 4,200 26 29 23 11 11 4,300 42 32 14 7 6 3,000 27 24 22 17 11 4,700 44 36 17 2 1 44 38 15 3 1 39 40 17 3 1 41 33 19 7 -- 65 27 7 1 66 28 3 3 54 34 9 3 49 35 8 7 Page 164 9.4 Trip Characteristics Visited on Recent Canadian Trip British Columbia Alberta Ontario Atlantic (401) (281) (490) (102) % % % % Purpose of Trip – All To see new places To enjoy the natural scenery – lakes, rivers, waterfalls, glaciers, trees, beaches and mountains To relax, unwind and decompress To experience local culture To visit friends and relatives To go shopping To visit historic sites, museums, or galleries To interact with the local people For entertainment and nightlife To be together as a family Low rates, good deals, and discounts To realize a long term dream To visit protected areas, including nature reserve, regional or national parks To experience big cities in another county To see and watch wildlife To attend festivals and/or events To participate in outdoor activities Honeymoon A trip that combined business with pleasure To visit a spa, health centre, or hotsprings To view aboriginal sites and events To go downhill skiing or snowboarding Other reason Source: Quantitative survey Q.8b, 9a, 10, 11, 16, 18, 19b-d1 61 79 58 82 56 68 62 65 40 42 42 24 36 32 16 21 15 30 47 40 42 42 21 39 33 12 22 15 34 55 35 41 54 33 38 32 18 24 15 24 32 34 49 39 25 43 41 24 24 19 29 42 23 44 10 21 6 6 8 11 12 4 21 49 12 24 8 5 11 12 14 6 29 23 12 10 4 7 5 7 5 5 27 39 13 19 16 13 14 14 10 5 1 Q.8b (IF CANADA IN Q. 8a) ASK) While you were in Canada on that trip, which of the following places did you visit, if any? Q.9a What were your reasons for travelling to (Q.8a DESTINATION) Q.10 On that trip to (Q. 8a) DESTINATION), how many nights, in total, were you away from home? Q.11 And when did you take that trip to (DESTINATION IN Q.8a Q.16 On that trip, did you travel with your immediate party only or as part of a larger group tour? Q.18 In what type of accommodation did you stay? Q.19b What was the total cost of that trip to (DESTINATION IN Q. 8a) for you and your immediate travel party, including airfare and all other costs? Q.19c Overall, how would you rate that trip on value for money – excellent, very good, good, fair, poor value for money? Q.19d How likely are you to recommend that destination to others? *Less than 0.5% Page 165 9.5 Activities Participated In The activity pattern for all regions is remarkably similar. In part this is due to the fact that the activity question is a trip based one – not a province specific one – and there is plenty of multiple province visiting. However, the more relevant fact is that the British are essentially looking for the same fundamental product in all regions of the country. • Seeing the region’s unique natural beauty. • Visiting places of historical interest. • Spending time in smaller towns and getting to know the local inhabitants. The VFR factor cannot be ignored. Between 50% and 59% visited with friends or relatives and those, of course, provide a conduit to get closer to the Canadian life style. The unique natural features of each region came through as important attractions—mountains in BC and Alberta, glaciers in the latter, the coastline of Atlantic Canada and the urban benefits of Ontario. Page 166 9.5 Activities Participated In Exhibit Section 9-5: Activities Participated In – Among those Who Visited B.C., Alberta, Ontario and Atlantic on Most Recent Canadian Trip Visited on Recent Canadian Trip British Alberta Ontario Atlantic Columbia (401) (281) (490) (102) % % % % Activities Participated In Visiting places of historical interest Seeing beautiful beaches and coastlines Fine dining Visiting small towns Sunbathing or other beach activities Getting to know the local inhabitants Seeing old architecture Taking city tours Observing wildlife in their natural environment Visiting museums or art galleries Viewing rivers or waterfalls Attending theatres, clubs or shows Viewing mountains Visiting friends or relatives Visiting wilderness areas Seeing modern architecture Visiting world heritage sites Staying at a luxury resort Taking nature tours Attending festivals or fairs Trekking in a nature area Aboriginal cultural experiences, celebrations, and attractions Visiting a spa Visiting casinos Taking a cruise 69 56 68 49 73 36 67 61 60 74 19 51 52 64 74 61 80 18 49 55 61 81 59 69 21 54 54 64 46 51 67 32 58 59 66 62 55 83 36 88 50 70 47 48 24 48 29 43 28 54 86 31 91 50 76 44 53 26 53 27 44 28 55 81 42 48 59 41 50 47 15 31 30 25 21 57 73 43 72 57 61 49 47 26 41 34 44 26 22 11 26 23 12 24 15 17 15 26 24 32 Page 167 9.5 Activities Participated In Visited on Recent Canadian Trip British Alberta Ontario Atlantic Columbia (401) (281) (490) (102) % % % % Activities Participated In Taking a garden or flower tour Canoeing/kayaking/boating Taking wine/culinary tour Taking a rail tour Attending professional sporting events Whale watching Visiting hotsprings Viewing autumn leaves Camping in a natural setting Cycling Viewing glaciers Trail riding on horseback Golfing Sport fishing Attending rodeos Viewing Aurora Borealis (Northern Lights) Downhill skiing or snowboarding Hunting Heli/cat skiing Dog sledding 31 21 16 30 17 36 27 21 17 16 48 12 8 11 10 11 32 23 14 32 18 33 35 25 15 17 61 13 9 7 14 12 17 15 17 19 19 12 12 28 10 10 15 8 7 8 5 8 26 26 24 34 32 37 20 38 30 22 23 18 16 26 14 20 14 6 6 8 16 6 7 10 6 4 4 4 19 18 16 18 Source: Quantitative Survey Q.19a1 1 19a) Which, if any, of the following activities did you participate in while on that trip to (DESTINATION IN Q. 8a Page 168 9.6 Travel Party For each region, group travel is 20% or less. Typical travel parties include: • Spouses/significant others (57% to 67%) • Adults only (82% to 86%) • More than one person (80% to 86%) Page 169 9.6 Travel Party Exhibit Section 9-6: Travel party – Among those who visited B.C., Alberta, Ontario, and Atlantic on Most Recent Canadian Trips Visited on Recent Canadian Trip British Alberta Ontario Atlantic Columbia (401) (281) (490) (102) % % % % FIT vs. Group Immediate party only Part of larger group Party Composition Spouse/significant other Children Travelled alone Friends Other relatives Parents Organized group/club Business associates/colleagues 84 16 79 21 86 14 94 6 67 16 14 14 9 7 3 1 67 17 14 13 8 6 4 1 61 18 14 13 10 7 3 2 57 14 20 17 8 8 4 2 Source: Quantitative survey Q.12, 161 1 Q.12 With whom did you travel on that trip to (DESTINATION IN Q.8a) Q.16 On that trip, did you travel with your immediate party only or as part of a larger group tour? Page 170 9.7 Trip Planning British Columbia • Friends and relatives are prime sources of inspiration to travel to Canada and to include British Columbia. • The internet, used more for planning purposes, is a source of inspiration for only 19%. • The lead time is longer than for other provinces: • 42.3 weeks planning in advance • 21.0 weeks booking in advance • Only half book through an agent. Direct to airline is high--at 45% and hotel at 24%. • Use of the online channel for booking purposes, regardless of the retailer, is as high as 85%. Clearly, the British are very comfortable with the internet for transactions. Alberta • As with B.C., friends and relatives are prime sources of inspiration to travel to Canada and to include British Columbia. • The internet, used more for planning, is a source of inspiration again for only 18%. • The planning lead time is shorter than for BC, but not the booking: • • 36.3 weeks planning in advance • 22.5 weeks booking in advance Online use for booking is a high 78%. Page 171 9.7 Trip Planning Ontario • The sources of inspiration are similar to those of Western Canada visitors – friends, relatives very dominant. • Internet as an influencer is at only 17%. The average planning lead time is relatively short – 29.3 weeks. • Only a minority book through agents (43%) – the rest direct. • Online use for booking is at 86%. Atlantic Canada • Visitors are more inspired by published stories and television shows, suggesting that Atlantic Canada has seen some inspirational publicity in Britain recently. However, the inspiration driven by friends or relatives still leads. • The majority are booking direct to airlines (57%) and/or hotels (35%). Agents handle only 40% of bookings. • Promotion of direct flights into Halifax by carriers may be a factor driving direct bookings. Page 172 9.7 Trip Planning Exhibit Section 9-7: Trip Planning – Among those Who Visited B.C., Alberta, Ontario, and Atlantic on Most Recent Car Trip Visited on Recent Canadian Trip British Columbia Alberta Ontario Atlanta (401) (281) (490) (102) % % % % All Source of Inspiration for Trip Planning Friend or relative 57 55 59 52 The internet 19 18 17 24 Destination travel guide 17 19 12 21 Television travel shows 11 13 10 20 Travel agent/tour operator 10 11 7 10 Saw a film on destination 8 9 6 12 Story in magazine or newspaper 10 10 7 13 Business reasons 5 5 6 12 Other television show 5 6 4 13 Direct mail or email advertising 4 5 3 13 Consumer travel trade show 4 4 3 8 A news story 5 4 3 9 Celebrity travelled there 3 4 2 10 Planning Horizons Average # of weeks 42.3 36.3 29.3 37.9 Booking Horizons Average # of weeks 21.0 22.5 18.5 20.8 How Trip Was Booked Booked through a travel agent/package provider (net) 51 56 43 40 In person 27 27 22 27 Online 14 15 12 7 Via phone 14 17 11 14 Airline (net) 45 41 49 57 Via their website 41 36 42 49 Via phone, email or in person 7 7 9 14 Hotel (net) 24 21 23 35 Via their website 21 20 21 31 Via phone 7 5 5 9 Other online travel supplier Other Total Online Source: Quantitative Survey Q.14a, 15 a-c1 9 5 85 8 6 78 11 4 86 1 Q.14a Were any of the following a source of inspiration for you to decide to travel to (DESTINATION IN Q.8A). Q.15a How long before your trip did you definitely decide to go on that trip to (DESTINATION IN Q.8a Q.15b And how long before your trip did you actually book it? Q.15c How did you book that trip? Page 173 7 3 93 9.8 • • Traveller Profile The profiles of visitors to each region have many similarities: • Slight skew to females • Over half have close connections in Canada • Usually married/living together • Employed and well educated • Incomes over £25,000 annually Differences tend to relate to age: • Visitors to BC and Alberta often age 50+ with one in four retired • Ontario and Atlantic Canada attracting younger travelers (often under 40). Page 174 9.8 Traveller Profile Exhibit Section 9-8: Profile of those who visited B.C., Alberta, Ontario and Atlantic on Most Recent Canadian Trips Visited on Recent Canadian Trip British Columbia Alberta Ontario Atlantic (401) (281) (490) (102) % % % % Age 18-29 30-39 40-49 50-59 60+ Gender Male Female City South East Greater London South West North West/Merseyside Scotland West Midlands Yorkshire/Humberside East Midlands North East Wales Eastern Close Friends/Relatives in Canada Yes No Marital Status Married/living with someone Single Divorced/widowed/separated Household Composition Adults only With children<18 17 24 15 23 21 16 20 15 27 23 20 25 18 20 17 25 28 20 13 15 47 53 46 54 43 57 52 48 24 16 9 8 10 6 6 6 6 6 4 21 15 11 7 11 6 7 9 4 6 5 21 13 8 9 16 6 6 9 4 5 3 29 21 7 4 9 9 8 7 2 3 2 54 46 55 45 62 38 57 43 78 14 7 79 12 8 71 20 8 80 16 4 71 29 70 30 67 33 58 42 Page 175 9.8 Traveller Profile Visited on Recent Canadian Trip British Alberta Ontario Atlantic Columbia (401) (281) (490) (102) % % % % Occupation Total employed Senior unskilled manual worker Skilled manual worker Supervisory or clerical/junior managerial/professional/administrative Intermediate managerial / professional /administrative Higher managerial / professional/ administrative Self employed Employed part time Student Housewife/husband Retired/semi –retired Other Education Less than secondary/secondary school A levels/AS levels/Scottish Highers/GNVQ/BTEC Undergraduate degree or equivalent Post graduate degree or equivalent Household Income (annual gross £) Under £20,000 £20,000 - <£25,000 £25,000 - <£30,000 £30,000 - <£40,000 £40,000 - <£50,000 £50,000+ 63 2 5 18 61 2 7 17 63 3 4 20 69 4 10 19 19 18 22 23 10 10 7 8 6 4 6 3 23 1 5 3 5 5 25 1 5 3 7 6 18 2 3 2 8 4 16 1 17 25 17 28 16 31 18 23 31 24 32 20 33 16 38 19 12 8 11 16 11 22 12 8 11 17 13 23 14 8 11 16 13 21 12 5 11 14 10 30 Source: Quantitative Survey Q.1,2,3a,28-34 (basic data) CAD Equivalent (Bank of Canada exchange rate, November 28, 2007) <£20,000 = <$40,998 CAD £20,000 - <£25,000 = $40,998 £25,000 - <£30,000 = $51,248 £30,000 - <£40,000 = $61,497 £40,000 - <£50,000 = $81,996 £50,000+ = $102,495+ CAD - <$51,248 CAD <$61,497 CAD <$81,996 CAD <$102,495 CAD Page 176 Section 10: Claimed Barriers to Canada Travel Page 177 10.1 Major Barriers to Canada Travel Concern about cost predictably surfaces as the top reason for procrastinating on a trip to Canada. Second, and related, is a desire for travel deals and not finding relevant ones. Many of the other chief concerns are also about the need for information—where to go, accommodation available, where to get information on the internet and what else there is to do beyond nature viewing. Exhibit Section 10-1: Major Barriers to Canada Travel Among Those Not Likely to Visit Canada in Next 12 Months Extremely/Very Important Barriers* 56% Concerns about the cost Insufficient information or knowledge about what deals are available Insufficient information or knowledge about where to go in Canada Insufficient information or knowledge about types of accomodation available Insufficient information or knowledge about where to get information on the internet Insufficient information or knowledge about what there is to do besides seeing nature 46% 41% 38% 32% 31% 29% Concerns about the weather Concerns about distance between accomodation and nature based activities Insufficient information or knowledge about cultural activities available 26% Concerns about safety in Canadian nature 26% Concerns about country too vast for a one or two week holiday Insufficient information or knowledge about restaraunts bars and clubs 26% 25% Concerns about lack of convenient flight to Canada 24% Insufficient information or knowldege about nightlife and entertainment options Concerns about greenhouse gas emissions due to air travel Concerns about not being able to speak the language 26% 20% 11% 9% Source: Quantitative Survey Q. 261 1 Base=n=1,576 Q.26 Some people are very interested in visiting Canada, yet have decided to put the trip off to a later year. From your personal point of view, how important are each of the following factors, if at all, in preventing you from travelling to Canada in the next 12 months? * The list of potential barriers was derived from the focus groups. The question uses a scale approach to measure the magnitude of each of the prospective barriers. Page 178 Section 11: Media Page 179 11.1 Source of Inspiration Friends and relatives are the principle source of inspiration for choosing a destination. The internet and travel guides (which typically provide planning information including itinerary ideas) round out the top three. Exhibit Section 11-1: All Source of Inspiration – By All Destinations Percent Among Past 3 Years Travellers All Source of Inspiration Friend or relative 46% The internet 18% Destination travel guide 13% Television Travel show 12% Travel agent/tour operator 9% Have been before 7% Saw a film on destination 6% Story in magazine or newspaper 6% Business reasons 3% Other television show 3% Direct mail or email advertising 2% Consumer travel trade show 2% News story 2% Celebrity travelled there 1% Source: Quantitative Survey Q.14a1 1 Base=n=2,232 Q.14a Were any of the following a source of inspiration for you to decide to travel to (DESTINATION IN Q.8A)? Page 180 11.2 Source of Inspiration – by Destination For trips to Canada, friends and relatives are unquestionably the dominant source of inspiration for UK travelers (as many as 57%). The internet is second, but far behind in comparison (15%). Friends are a major source of inspiration for other destinations as well— especially Australia. As discussed in the focus group findings, the British are highly social and to visit friends or listen to the advice of local friends upon returning is a natural path. Exhibit Section 11-2: All Source of Inspiration – by Destination Percent Among Travellers Visiting Each Asia Australia U.S. Canada (382) (165) (832) (884) % % % % Source of Inspiration - All Friend or relative 45 64 48 57 The internet 19 12 20 15 Destination travel guide 16 13 12 12 Television travel shows 13 12 11 8 Travel agent/tour operator 10 6 7 7 Have been before 5 -- 7 4 Saw a film on destination 8 6 7 6 Story in magazine or newspaper 7 7 6 6 Business reasons 6 3 3 5 Other television show 4 4 4 3 Direct mail or email advertising 2 2 2 2 Consumer travel trade show 3 4 1 2 News story 4 1 1 2 Celebrity travelled there 3 5 1 1 Source: Quantitative Survey Q.14a Q.14a Were any of the following a source of inspiration for you to decide to travel to (DESTINATION IN Q.8A)? Page 181 11.3 Primary Source of Inspiration Further proof of the influence of friends/relatives--they are by far the dominant influencer for long-haul travel. Only 9% mentioned the internet, 5% travel television shows. In 1997, as many as 73% of travel agents claimed that they were influenced in the specific destination chosen. However, here only 4% travellers cite them as a source of destination inspiration. Clearly, the source of influence has changed. Exhibit Section 11-3: Primary Source of Inspiration – By All Destinations Percent Among Past 3 Years Travellers Primary Source of Inspiration Friend or relative 38% The internet 8% Have been before 6% Television travel show 5% Destination travel guide 5% Travel agent/tour operator 4% Business reasons 2% Saw a film on destination 2% Story in a magazine or newspaper 1% Other television show 1% Direct mail or email advertising 1% News story * Celebrity travelled there * * Consumer trade show Other None/not stated 10% 17% Source: Quantitative Survey Q.14b1 1 Base=n=2,232 Page 182 11.4 Primary Source of Inspiration – by Destination With Canada, friends and relatives far outweigh other sources of inspiration. Exhibit Section 11-4: Primary Source of Inspiration – by Destination Percent Among Travellers Visiting Each Asia Australia U.S. Canada (382) (165) (832) (884) % % % % Primary Source of Inspiration Friend or relative 37 53 40 49 The internet 9 4 8 5 Have been before 5 -- 7 3 Television travel shows 5 7 5 4 Destination travel guide 7 4 4 5 Travel agent/tour operator 2 * 3 3 Business reasons 4 2 1 3 Saw a film on destination 3 1 2 2 Story in magazine or newspaper 2 1 1 2 Other television show 1 1 1 1 Direct mail or email advertising 1 1 1 * News story 1 -- -- 1 Celebrity travelled there 1 1 * * Consumer travel trade show * -- * * Other 10 10 10 10 None/not stated 14 16 16 13 Source: Quantitative Survey Q.14b Q.14b Which of those was the main source of inspiration for choosing that destination? *Less than 0.5% Page 183 11.5 Specific Sources Used for Trip Decision Among the few who mentioned that television travel programming was influential, BBC Holiday, followed by Sky Travel, was the most often cited. Exhibit Section 11-5: Specific TV Travel Show and Other TV Shows Used Percent Among Travellers Using Each Medium Television Travel Shows (n=237) Other Television Shows Used (n=57)* Major Mentions % Major Mentions % BBC Holiday/Holiday 27 Sex and the City 13 Sky Travel/Sky Travel Shop 19 Wildlife/Nature programs (non-specific) 11 Wish You Were Here 10 BBC Holiday/Holiday 11 Travel programs/shows (non-specific) 4 Travel programs/shows (non-specific) 10 BBC Mentions (non-specific) 3 Friends 8 BBC Travel 3 Other TV shows/dramas 6 Various shows 3 Discovery Channel 6 Thompson Travel 3 Sky Travel/Sky Travel Shop 4 Thomas Cook 2 Movie mentions 3 Wildlife/Nature programs 2 Lonely Planet/Planet 3 Pole to Pole 3 Around the World in 80 Days 3 Source: Quantitative Survey Q.14 c, d * Caution small base size Q.14c Q.14d (IF TELEVISION TRAVEL SHOWS IN Q.14a) ASK You mentioned “television travel shows” as a source of inspiration, which television travel shows in particular were a source of inspiration? (IF OTHER TELEVISION SHOWS IN Q.14a) ASK You mentioned “other television shows” as a source of inspiration, which television shows in particular were a source of inspiration? Page 184 11.6 Specific Websites Used for Trip Decision Popular word search sites are the main gateways to travel information (to 64%). General travel sites (48%), traveler review sites (42%), hotel sites were next, followed by national tourist offices (38%). Exhibit Section 11-6: Specific Websites Used Percent Among Travellers Using Internet Word/phrase search engine (e.g., Google, Yahoo, MSN) General travel sites (e.g., Expedia, Travelocity) Traveller review sites (e.g., tripadvisor.com) 64% 48% 42% 42% Hotel websites National tourist offices 38% Airline websites 38% 34% Resort websites 31% Tour operator sites Other government tourist organizations 24% 15% Car rental websites 11% Local travel agencies online Other private sector sites Travel blogs Other sites 3% 1% 3% Source: Quantitative Survey Q.14e1 1 Base=n=385 Q.14e (IF INTERNET IN Q. 14a) ASK) You mentioned that you use the Internet as a source of inspiration. Did you use any of the following sites Page 185 Section 12: Trip Planning Page 186 12.1 Trip Planning/Booking Leadtime The British plan their trips 8 months in advance, booking them relatively early--5 months in advance. Exhibit Section 12-1: Trip Planning/Booking Leadtime – By All Destinations Percent Among Past 3 Year Travellers Planning Leadtime Less than 1 month Booking Leadtime Less than 1 month 12% 1 - 2 months 14% 2 - 3 months 13% 1 - 2 months 11% 2 - 3 months 12% 3 - 6 months 3 - 6 months More than 6 months Average # of weeks 16% 27% 28% More than 6 months 34% 33% 30.6 Average # of weeks 18.7 Source: Quantitative Survey: Q. 15a,b1 1 Base=n=2,232 Q.15a How long before your trip did you definitely decide to go on that trip to (DESTINATION IN Q.8a)? Q.15b And how long before your trip did you actually book it? Page 187 12.2 Trip Planning/Booking Leadtime – by Destination Planning and booking lead times are quite typical for Canada—again, booking very early relative to France and Germany. Exhibit Section 12-2: Trip Planning/Booking Leadtime – by Destination Percent Among Travellers Visiting Each Asia Australia U.S. Canada (382) (165) (832) (884) % % % % Planning Leadtime Less than 1 month 17 11 7 9 1 – 2 months 16 9 13 11 2 – 3 months 13 14 13 12 3 – 6 months 25 26 31 32 More than 6 months 30 42 36 36 31.1 32.7 31.4 34.4 Less than 1 month 23 15 13 12 1 – 2 months 11 6 11 10 2 – 3 months 14 12 11 12 3 – 6 months 23 35 26 29 More than 6 months 28 32 39 37 17.6 17.3 20.1 19.6 Average # of Weeks Booking leadtime Average # of Weeks Source: Quantitative Survey Q.15a,b Q.15a How long before your trip did you definitely decide to go on that trip to (DESTINATION IN Q.8a)? Q.15b And how long before your trip did you actually book it? Page 188 12.3 How Trip Was Booked Just over half book their long-haul trips through a travel agent. It is very common to go direct to the airline (35%) and/or to an hotel site (17%) for booking. The traditional in person visit to a travel agent has fallen to only 24%. Exhibit Section 12-3: How Trip Was Booked – By All Destinations Percent Among Past Travellers Trip Booked Through: Travel agent/package provider (Net) 55% 24% In person 18% Online 16% Via phone 35% Airline (Net) 30% Via their website Via their phone, mail or in person 6% 17% Hotel (Net) 15% Via their website Via phone 4% Other online travel supplier Other 58% Online Bookings (Net) 13% 5% Source: Quantitative Survey Q.15c1 1 Base=n=2,232 Page 189 12.4 How Trip Was Booked – by Destination With travel to Canada, booking direct to an airline (47%) is actually more common today than using a travel agent (44%). Regardless of who the ticket seller is, as much as 63% of transactions are done online in Canada’s case. Exhibit Section 12-4: How Trip Was Booked – by Destination Percent Among Travellers Visiting Each Asia Australia U.S. Canada (382) (165) (832) (884) % % % % Trip Booked Through: Travel agent/package provider (net) 57 64 49 44 In person 22 33 22 21 Online 15 16 18 13 Via phone 22 22 12 12 Airline (net) 34 32 41 47 Via their website 27 26 37 42 Via phone, email or in person 8 8 6 7 Hotel (net) 19 21 21 23 Via their website 16 17 18 21 Via phone 5 6 5 5 Other online travel supplier 13 18 13 9 Other 4 1 5 6 56 55 64 63 Online Bookings (net) Source: Quantitative Survey Q.15c Q.15c How did you book that trip? Q.15c How did you book that trip? Page 190 Section 13: Environmentally Responsible Destination Page 191 13.1 Long-Haul Traveller’s Environmental Involvement The vast majority of Brits claim to try to reduce the impact they have on the environment on a daily basis (75%). Exhibit Section 13-1: Long-Haul traveller’s Environmental Involvement Strongly agree 29% 75% 46% Agree Neutral Disagree 20% 3% Source: Quantitative Survey Q.27a1 1 Base=Past/future travellers n=2,697 Q.27a To what extent do you agree or disagree with the following statement? It is very important to me that I take action on a daily basis to reduce my impact on the environment by adopting environmentally-friendly measures such as recycling, conserving water. Page 192 13.2 Importance of Destination’s Record on Environment However, while most make a personal effort to reduce their impact, only 29% claim that their concern is enough to influence their choice of destination based on its environmental record—quite a low level. Exhibit Section 13-2: Importance of Destination's Record on Environment When Choosing Travel Destination Extremely important 9% 29% Very important 20% Fairly important 37% 26% Not very important 35% Not at all important 9% Source: Quantitative survey Q.27b1 1 Base=Past/future traveller n=2,697 Q. 27b Thinking about the environment, some countries are making considerable effort to be more environmentally responsible, while other countries are much slower to react. When choosing a travel destination, how important to you is a destination’s record on the treatment of its environment? Page 193 13.3 Destination Rating on Being Environmentally Responsible The British believe that their own nation has a fairly poor record in terms of environmental responsibility. Among four offshore destinations evaluated, Canada emerges as having the best reputation, ahead of Australia, with the U.S. and China trailing badly. Exhibit Section 13-3: Destination Rating on Being Environmentally Responsible Top 3 Box Scores (10,9,8)* Average Canada 36% Australia 30% Own Country (U.K.) 21% United States China 9% 4% 7.1 6.8 6.2 4.1 2.9 Source: Quantitative Survey Q. 27c1 1 Base=Past/future travellers n=2,697 27c How would you rate the following countries as an environmentally responsible destination? Using a scale of 1 to 10 where “10” means extremely good and “1” means extremely poor, or any number in between. *Rating on a 10 pt. scale. 10 means extremely good and 1 means extremely poor. Page 194 Section 14: Consumer Product Idea Forums Page 195 14.1 Introduction—Online Forums This section reports on a qualitative study conducted online amongst tourists from the United Kingdom who fell into two different categories: ¾ Those who have visited Canada before, in the recent past ¾ Those who declared a strong interest in visiting Canada in the near future The principal objectives of this study were to formulate hypotheses bearing on the following issues:¾ ¾ ¾ ¾ Hope and expectations of tourists coming over to Canada from the UK What they appreciate the most, in reality and in prospect The sights, places, activities that have the greatest magnetism for them What kinds of specific itinerary might be developed to appeal to them Each region addressed in the forums was focused on in a separate section, revealed day by day to the participants. The forum started with an overview of Canada as a destination, providing a holistic picture of travel to Canada from the UK. Page 196 14.2 Canada as a Destination: General Observations Canada rates highly as a “dream” destination, poorly as a planned destination, and rarely as an extended “city visit” destination. The primary conversion method for the UK tourists has been visiting friends and relatives (VFR) and/or strong recommendations by friends. The key, for Canada, is shifting it from a “dream” destination to a reality destination. While the current major conversion factor is VFR, the introduction of “cheap” fares to Canada, and the increased frequency of flights and increase in Canadian destinations brought around when the new Open Skies agreement is signed should help. Certain specific destinations are in Canada are iconic for the UK ¾ ¾ ¾ ¾ ¾ Vancouver Whistler Rocky Mountains Niagara Falls Toronto. General knowledge of Canada, even amongst previous visitors, is poor – especially in terms of the size of the country and travel distances. Barriers identified are the same as those in the focus groups. NB: these barriers all involve the need for reassurance of “comfort”-- not in the sense of “luxury” but, rather, in the sense of feeling comfortable, safe and not bored with what they will do. Page 197 14.3 U.K. Stereotype Perceptions Of Canada There are a number of stereotypical perceptions of Canada held by UK respondents, each of which holds advantages and disadvantages for the development of new products. Clean; Friendly; Polite; Vast: In general, Canada (and Canadians) are seen in a positive light and are considered more “civilized” than Americans – an attribute that extends to our cities. The streets were "Very, Very clean" in comparison to the streets of London. The store assistants were very friendly and helpful but it seemed more like they were happy to help with what I wanted rather making me like I was troubling them. Vancouver is slicker and much glitzier than Portland. it's super clean (i know Portland is too but..) and doesn't feel as crowded even though I'm sure it's a bigger city (not sure how they manage that one) People were very friendly, it was clean and service was good. Standard of food was quite good too. I often go to America because I have family there. Americans are brash and arrogant. The saying "have a nice day" sums them up (I hope there are no Americans doing this market research) they don’t care what sort of day you have. The Canadians are different they seem to care. They are more polite, they give you time and are very friendly. Although the web site is very informative and easy to use, I have my concerns in that the distances and areas do not compare with the UK. Canada is a vast country I believe that the UK could fit into British Columbia alone. I would need to call on professional advice to tell me what is and is not feasible. All of these perceptions mean that Canada and Canadians “mesh” better with UK residents than Americans do, and our products need to highlight this difference in both overt and subtle ways. At the same time, the UK respondents were, for the most part, completely mentally unprepared for the size of Canada, and this is reflected in a number of their concerns. Page 198 14.3 U.K. Stereotype Perceptions Of Canada Canada: a “winter nation” The problems with the image of Canada as a winter nation are discussed somewhat in the section on Ontario, but this respondent’s comment is worth repeating. Canada would greatly benefit if they advertised their warm summers in a similar fashion to Florida by showing people in summer wear, drinking popular Canadian beers in bars (and not hidden by a brown paper bag), sitting outside restaurants having drinks and showing some hip trendy spots. The current CTC campaign of Canada, Keep Exploring, highlights the diversity of activities and tourism products available in Canada quite well and is, on the whole, an excellent, year-round theme. But, as this and other respondents noted, we don’t really combat the icon of Canada as a winter nation; an icon that operates at the level of a cultural sub-conscious. Indeed, our current advertising of ski products reinforces this image to some degree to the potential detriment of our summer based products. Possibly, the simplest way to overcome this problem, while retaining the advantages of the winter nation icon, is to create a series of “double-binds” such as “ski in the morning, sun bath in the afternoon”.1 Other examples could include the use of extreme stereotypes from the sub-conscious culture being presented and “refuted” such as black and white film of dog sleds in winter with a flash forward to people relaxing on a summer day at a trendy spot saying “glad we don’t live like that anymore”.2 1 The term “double-bind” was coined by Gregory Bateson and refers to bringing opposite views of the “same” thing into consciousness at the same time. Handled well, the presentation of a double-bind allows for the message that conveys the double-bind to include the desired solution. 2 These are merely crude examples of double-binds. Page 199 14.4 Experiences of Canada The following accounts of visits to Canada are fairly typical. These accounts tend to highlight the iconic nature of many UK visits to Canada. i) Flew to New York then went on a cruise to see New England and Canada. We went to Halifax on the cruise. On our return we flew to Niagara Falls (3 days), then drove to Toronto (3 Days). Flew back to New York (2 Days) then back to the UK. II) Flew to Vancouver (2 days), did a bit of shopping and experienced the nightlife. Then flew and drove to Whitehorse, Dawson City and other areas in the Yukon Territory (7 days). Side trip to Skagway (3 days). Returned to Vancouver (1 day) and flew home. For many UK visitors, it was common to “dip into” the United States – either flying their originally or on side trips. Page 200 14.5 General Discussion of Tourism Products The vast majority of UK travelers desire a “modular” experience with a vast range of “plug and play” tourism products. In part, this derives from the extensive VFR travel bias of many UK tourists who “must” spend some time visiting their friends and family even if it requires a second plane flight to reach their ultimate destination. In other cases, it derives from strong interest driven tourism (e.g. skiing). On Itineraries and Location This modular experience, and the desire for plug and play products, creates a situation where itineraries and itinerary planners become crucial. Of key concern to many of the respondents was the time and distances involved, and placing product locations into the “grand scheme of things”. The sites appeared to open my horizon to the various parts and what is available. However I found it difficult to make the links between each part-- for instance how far it would be from Toronto to Manitoba, or Niagara to Manitoba. A route master map would be useful. I found all the sites informative but lacking in-depth maps and distances. I had real trouble finding where places were 'in the grand scheme of things' Google maps and Google earth links would be very useful. Even respondents who had been to Canada before have great difficulty with how large it is. Respondents who had not been to Canada previously consistently underestimate the size of both the country and various provinces by a factor of four or more and this, in turn, led to a lot of concern over time and distance between destinations. Page 201 14.5 General Discussion of Tourism Products The deployment of some type of geo-tagging system, whether it be using Google Maps Google Earth1, PlanetEye (planeteye.com) or some similar system, would go a long way towards alleviating some of these concerns. Another solution which would also be useful would be a simple mileage chart or drop down menu with different transport options available and information links.2 As one respondent noted I would like to see a detailed map of the area where you can also put information in between towns and it gives you options on how you might get there and how long it would take via each mode of transport. I would like to be able to click on point A and then point B my next destination and it also shows what is "in between" in terms of historical stuff, entertainment, sports etc. One reason why both itinerary modularity and route planners are both so important for the UK traveler stems from their general desire to be able to “travel about”. In discussing detailed plans for individual areas, many respondents mentioned renting cars or motor homes and just “cruising” or taking road trips. Frequently, they would mention “asking the locals” for suggestions. British travelers are, in many ways, notorious for choosing their own paths and changing them on a whim. This is actually a very well established tradition amongst middle-class British tourists dating back over 100 years, and it appears to be the internalized view of what is the “correct” way to travel. Thus, while they will wish to see the iconic sites, they also want the freedom to modify their itineraries “on the fly”. 1 As a note, Nova Scotia’s official Tourism web site has already produced a Google Earth .kml file. Ideally, such a solution would use interchangeable data structures and could be implemented at the local level while drawing from a national level database, allowing local sites to offer “national level” information. While UK respondents are nowhere near as schedule sensitive as most Asian visitors, such a system would serve both. 2 Page 202 14.5 General Discussion of Tourism Products On “Word of Mouth” The vast majority of UK respondents choose Canada as a result of recommendations from friends and relatives (whether or not they happen to live in Canada). Barring the existence of personal recommendations from friends and relatives, they are, on the whole, quite comfortable with virtual recommendations. I'm a great believer of word of mouth and recommendations especially from people who travel with their children. Links to reputable sites like Trip Advisor, Time Out etc would enhance my 'trust' in tourist board sites definitely. Testimonies from previous visitors can look a bit cheesy - impartial reviews are preferable definitely. I'm a big fan of online communities for up to the minute information and all round discussion so I would really welcome a link to ski forums in the region I was thinking of going. Why not have a few recommendations from tourists that have used the website to plan their trip? Post comments, suggestions and the route they took. It would be really great if I could log on to a site and say I want to fly to Vancouver, I've got 10 days and want to see as much as possible. Work out an itinerary for me with distance, times and what to see. While this is not the place to discuss the full requirements for online communities, there are some points that need to be addressed.1 First, several fairly trusted online “communities” already exist (e.g. TripAdvisor). Second, attempts to build and host a highly moderated online community usually fail since the posts tend to be viewed with a lot of scepticism.2 The optimal solution for tourism providers is to monitor key online communities and act as problem solvers and information sources. 1 A full discussion of the structures of online communities of various types can be found in Tyrrell, Marc W.D. Hunting and Gathering in the Early Silicon Age: Cyberspace, Jobs and the Reformulation of Organization Culture. In The Handbook of Organizational Culture and Climate, Ashkanasy, Wilderom, and Peterson (eds.), Sage Publications, 2000. 2 “highly moderated” communities refer to online discussion boards where the content is usually pruned very heavily by the moderators. In general, the moderators have a tendency to eliminate anything “negative”, hence the general view of them as untrustworthy. Page 203 14.6 Functional Product Areas for the UK Traveler Several functional areas and interests crossed most provinces, and it is worth considering them in some detail. On Skiing Skiing and winter sports have been the subject of intense advertising in the UK. This has, in part, helped to maintain the image of Canada as a winter nation (Canadian winters have been iconic in the UK for at least 100 years). That said, in comparison with the EU, Canada has an excellent competitive advantage in the ski product area. As one respondent cogently noted, Canada’s advantages are: ¾ Less busy - Europe has a relatively small ski high quality ski area to service a large, heavily populated land mass so everything seems to be busier - longer queues at lifts etc. Waiting in an enormous line tends to detract from a good skiing day (especially given that the residents of certain European countries don't seem to believe in queuing!!) ¾ Better Snow - I'm a snowboarder so there's nothing better than powder and on the whole I'd say that somewhere like Sunshine has a much more reliable supply of it than most of the European resorts I've visited. ¾ Cost - I think that you get better value for money on a N. American trip. Europe seems to be very expensive and the accommodation is not always great. It's only the flight to/from Canada that makes Europe competitive for me. ¾ Customer Service - In my experience, Canada is more service orientated and the people friendlier than in most European resorts. There's also the bonus of being able to speak English when dealing with issues or problems but you can still practice your French if you'd like. The key blockage is travel time/cost from the UK. Some of this blockage may be dissolved if and/or when an open skies agreement is signed with the EU – at the minimum, flight options will increase and costs will probably decrease somewhat due to increased competition. On Food While mentioned primarily in reference to the Atlantic provinces, there are significant opportunities in this area in all regions given the development in Canada of multi-ethnic fusion cuisine as well as solidly established regional cuisines. Page 204 14.6 Functional Product Areas for the UK Traveler On Wine Many respondents from the UK know that Canada has a wine industry, but they are not aware of its placement or depth (they usually think of the Ontario VQA group in the Niagara region). Reactions to the development of the wine industry in BC, Nova Scotia and in Prince Edward Country (Ontario) suggest that there are opportunities for specialty wine tour products at a local / regional level that are co-branded by local wine growing associations and local tourism organizations and sold via word of mouth through the wine community in the UK. During an on again, off again discussion of the PEC wineries, one respondent asked if they (PEC wines) were available in the UK because they would like to try them. Later on, the respondent said that they would probably hit the County to see the wineries. This is a fairly standard process amongst wine aficionados – taste a wine and, if good and relatively unknown in their area, go to the vineyard and purchase several cases. Why his is important is that a) it creates “bragging rights” for the person who does it, and b) they then act as a local source of information to their peers (i.e. a “friend referral”). Page 205 14.7 Barriers and Options The UK forums identified two key barriers based on cultural perceptions: the image of Canada as a winter nation (see above) and the reticence of Canadians to “push ourselves”. Not pushed enough… Many respondents feel that Canada does not push itself enough. I don't think that Canada sings its praises enough. There is so much going on there and loads to shout about. I get the feeling that Canadians are very proud of their country, and with good reason. The country has so much to offer it's unreal. They need to shout about it all a bit more - are they a bit like the British in that respect, good at playing down their good points? This is quite a sophisticated observation, especially the part about it being part of our British heritage. This stands in stark contrast to the UK view of Americans as “too pushy” and the Australians as “loud but civilized”: we are, in effect, neither loud enough nor pushy enough.1 Options The key conversion problem is in the final “hook” to get UK residents seriously planning a vacation to Canada or, in other words, to convert Canada from a “dream destination” to a real destination. The participants in the forums noted this when they talked about a) how little they knew about Canada and, especially, the vast variety of tourist opportunities here and b) suggested that we “push ourselves” more. Exactly how Canada should do this was only suggested by one participant. So I think Canada speaks for itself, once you're there, it's just getting people there that's the trick. How about a cheap airfare promotion, that would encourage people to visit and they could then act as miniambassadors 'cos they're bound to love it... 1 The reasons behind these stereotypes are complex, but go back to the respective histories of the Anglo Complex countries with the UK and are part of the sub-conscious cultural baggage of the UK. Page 206 14.7 Barriers and Options This particular suggestion is, at its core, possibly the ultimate viral marketing campaign especially since all of the online forum participants believe that the experience of Canada is the best selling point for Canada. Creating Customers rather than Consumers Ultimately, the thrust of the CTC Canada: Keep Exploring campaign is to create tourism customers rather than tourist product consumers: we both want and need people to keep coming back to Canada and to establish Canada as a customary vacation destination. We already know that Canada is one of the top dream destinations and, at the same time, that one of the most potent conversion factors is VFR. This needs to be our leverage point – we need to create opportunities for potential UK visitors to come to Canada and sell themselves (along with their friends and family) on Canada. How can this be done? We would have to recommend a matrix viral marketing campaign, containing both regions (including city visit “getaways”) and functional areas, such as skiing and wine tasting. Ideally, the campaigns could be co-branded (and co-funded). Example 1: one participant noted that the line-ups for ski lifts in the EU were quite long in comparison with Whistler and Banff. Even worse, the coffee that was available was vastly overpriced (3€ or ~$4.5 in France). A “Tired of the lineups?” campaign, complete with flyers and free, Canadian coffee along with a chance to win a ski trip to Canada could prove very effective. Example 2: several participants were quite interested in Canadian wines and wanted to know if they were available in the UK. A combined export push supported by DFAIT, the wine industry and the CTC, coupled with stories in publications, wine tasting events, and one or more regional wine tour vacation trips would enhance both the knowledge of Canada’s wine growing regions and the country in general. Page 207 14.8 British Columbia British Columbia is one of the best know destinations in Canada, and has three iconic destinations: Vancouver, Whistler and the Rocky Mountaineer. Despite this, general knowledge of BC is quite limited even amongst respondents who had previously travelled there. Furthermore, BC is frequently (~50%) linked with Alberta, i.e. Calgary, Banff, Lake Louise as a fly-drive option. General reactions to the website were quite positive and, even amongst people who had been to BC before; they were, on the whole, impressed with the variety of options available. The reaction to available activities amongst the non-visitors was even more extreme Well, I've overcome the website problems[1] and have thoroughly familiarized myself with British Columbia and what it has to offer - pretty much everything! It's more a case of having to scrub all the things I don't want to do on my Canadian odyssey, so that I am just left with the core of what I'd really love to do. Throughout their discussions of BC, the respondents showed a fairly consistent underlying perceptual bias towards “Civilized Nature” – i.e. clean cities with polite people living close to vast natural beauty. Concerns were primarily with travel times, medical facilities (especially important amongst older visitors), general comfort, authenticity, and getting off the “beaten trail”. These two final points need some expansion. Many of the respondents were interested in accessing “nature” and outdoor activities (the British have a long history of this, especially hiking, intimately tied into the development of tourism in England). They do not, however, have the cultural or social background that gives them the survival skills for “real” nature. As a result, while they have a great desire to “contact nature” in an “authentic” manner, they really wouldn’t know how to handle it by themselves. As such, positive interactions with “nature” need to have a solid safety net, including guides and “decent” accommodation and food. 1 These “problems” appear to have been at the respondents end. Page 208 14.8 British Columbia Product Discussion The three iconic destinations for BC are Vancouver, Whistler and the Rocky Mountaineer. These destinations enjoy an excellent reputation as “must see” icons, although there is some variance on them. Vancouver is primarily a rest / shopping destination that acts as a gateway to either Whistler (for the Ski traveler or the Rocky Mountaineer (for the Civilized Nature traveler). Many different product options were mentioned, although the two key ones were a Vancouver Islands excursion (2-3 days) and a car rental road trip (4-7 days). Excursions to the wine region were not that well known, probably due to a lack of general knowledge of the BC wine industry in the UK market. Despite different products being mentioned (and web resources being provided with the information), the respondents were, on the whole, quite ignorant of the actual products available, outside of the icons. This indicates that the best way to “sell” BC products is to establish associations between products (old or new) and existing icons. For example, Whistler is an icon of skiing and snowboarding, but it is only one of many. Other products can be linked with Whistler and defined in the UK market by their “distance” (in terms of price, quality of snow, accommodation, technical difficulty, etc.) from Whistler in order to play to different need states (e.g. skiing / boarding community status, social prestige in terms of exclusivity, etc.). Roughly half of the respondents talked about renting a car and driving to various places to see “nature”. In addition to concerns about distance and time, some people expressed concerns about accommodation quality, available events, etc. As one respondent noted To be honest I love this stuff but if time is short and anything less than 3 weeks is pretty short there's a feeling that you don't want to waste any time taking wrong turns and heading to places that are a bit of a waste of time. The worst feeling is spending 3 days at an OK place to find out there's an amazing place 10 miles down the road. This concern highlights one of the most important roles for detailed geographical/ product information either in some form of geo-tagging itinerary generator or in print form. Page 209 14.8 British Columbia The following itinerary created by one respondent highlights many of these points: Flight from London to Calgary (1 night). Rent car (4 x 4) drive to Banff – selected hotel after arriving. ¾ Walking tour (looking at “scenery”) ¾ Driving tour (looking at “scenery”) Drive through Rockies ¾ Lake Louise (1 night) ¾ Columbia Icefields. ¾ Jasper (1 night) Either ¾ Drive to Whistler (3 nights) then drive to Vancouver, or ¾ Kamloops and take Rocky Mountaineer to Vancouver (2 nights) From Vancouver fly to Victoria (2 nights) Fly back to Vancouver to shop and then back to London. The desirability of road trips also points towards a class of products that involve experiencing nature with a safety net. In the case of BC, many of these are well covered on the web site and it is more a matter of bringing them out. It is interesting to note that Hiking, which is a British cultural icon, does not have its own heading in the Natural Sights, Parks & Wildlife page,1 even though there is a Hiking page available on the site.2 We would recommend that it also be listed on the Natural Sights, Parks & Wildlife page. 1 http://www.hellobc.com/enCA/SightsActivitiesEvents/NaturalSightsParksWildlife/BritishColumbia.htm 2 http://www.hellobc.com/enCA/SightsActivitiesEvents/AirLandActivities/Hiking/BritishColumbia.htm?Lev1=1 Page 210 14.8 British Columbia Vancouver Island is an interesting case of an “add-on” that is very poorly understood by the UK respondents. In answer to a question about what people knew about what was available on the Island, the response were disappointing, but illustrative of the problem of non-iconic destinations. Have heard it mentioned by people and of course its accessible from Vancouver, know its got skiing, but would have to look at the link to find out more about it. Not a great deal to be honest, interest is purely based on recommendations, during which the word beautiful came up a lot. Having looked at the website I can see there's plenty of outdoor activities to do whale watching, hiking, mountain biking, canoeing etc, which I'd enjoy. These responses indicate several things. First and foremost, they have “heard about it” from friends. Second, their immediate response is to go (or not) to the web site for details, but only after being asked. Once again, we can see that the problem is not with the products but, rather, with a) the respondents knowledge of the products and b) the “hook” to get them to travel there. The likeliest “hook”, mentioned by several respondents, is a customizable 3-5 day excursion. Given the variety of existing products, the mild climate and the generally more “relaxed” pace, we would suggest that such an excursion use Victoria as the start/stop point and be aimed at the older travelers and/or those with young children. A start on such excursion packages has already been made by Tourism Victoria, but it would need to be expanded somewhat to include activities on the rest of the island. Page 211 14.9 Alberta Alberta or, rather, the Calgary - Banff - Jasper corridor, is often conflated with British Columbia. In many ways, the perception of Alberta is similar to that of BC, although the desirability of both Calgary and Edmonton is lower than that of Vancouver. We certainly saw similar aspects in regard to “Civilized Nature” as we did with BC from the respondents. Unlike BC, however, the UK traveler had a distinct concern that was apparent on the part of the respondents towards “commercialization”. As one respondent noted My main concern from a brief look at a website is possible commercialism. It all sounds a bit too good to be true. Here in UK we stay on working farms up and down the country. The kids like to help out if they are allowed but mostly we don't stay where the farm lays on activities or 'entertainment' itself. I'm tempted to 'experience' a farm in Alberta but wondering if it would be a bit made up. Another example, steam train rides - my son loves them and we've got into it now too but when looking at the website it seemed a bit contrived. The issue of commercialization is an important one, since it strikes at one of the core perceptions of Canada as being “authentic”: The reason we love Canada is because it is beautiful, safe and peaceful. This is what gives us pleasure. It is not commercialized. “Commercialization” is, generally, viewed as a property of the United States, and the lack of it is seen as a major differentiator with the U.S. (along with “safe”, “clean” and “polite”). The concern over commercialization – “a bit contrived” – probably refers to the way the language is used, the “Wild West thing” as one respondent put it and, definitely, ties in with the “unreality” of a 20,000 acre farm for the British. Symbolically, this combination is more likely to evoke American images than Canadian images in the minds of UK respondents and, hence, raise concerns about “commercialization”. Page 212 14.9 Alberta Product Discussion Alberta has several iconic status destinations: Banff - Lake Louise, Jasper and, to a lesser extent, Calgary (it is known, but not appreciated). The West Edmonton mall is not, for the UK traveler, an icon but, rather, not something to be “pushed” The Cultural City of Canada 07 interested me about Edmonton but I found the website pretty cheesy. The most frequently asked was about the mall it seemed. Not so cultural. As with British Columbia, the problem lies not so much with the existing products, but with the knowledge of these products amongst UK respondents. In particular, no additional work is required for the Banff – Lake Louise corridor, although some additional excursions to surrounding areas may well be developed in keeping with the Civilized Nature concept. The idea would be to draw on the existing knowledge of the area and expand on it, and a geo-tagging solution may be the best option here. In developing the “Wild West” theme, there are some excellent existing products, but these appear to be misunderstood by many UK respondents. First of all, the term “Wild West” (used by several respondents) is American, and that brings all sorts of unwanted symbolic associations for many UK respondents (“brash”, “not polite”, and “uncaring” are just some of the terms used). These are symbolic associations that should be avoided. A second problem lies with the graphics in the Badlands site – it is way too “Cowboy” oriented, especially in areas where it should not be (i.e. the Natural History section). The UK has had a long history of “gentlemen explorers”, and this is part of the tradition of both Canada and Alberta, but it is not brought out (or known) to our UK respondents. “Gentlemen explorers”, such as Joseph Tyrrell, should be brought out in the natural history area.1 The concept of “gentlemen explorers” could be harnessed into serving as the basis for a number of specialized tourism products and, given the general popularity of dinosaurs; this would probably be a good place to start the marketing. 1 For a good, short (1 min) video, see http://www.histori.ca/minutes/minute.do?id=10181 Page 213 14.9 Alberta The concept of “farm/ranch vacations” also needs more explanation and context for UK respondents, lest it be thought of as a) American, and b) “commercial” (i.e. not “authentic”). Part of the difficulty for UK respondents lies in the shear scale of Alberta “farms” as the following exchange illustrates VSW: The farm idea appealed to me most. I would want to look into it more. I'm sure I and the family would enjoy a lot of what is going on there. No idea what 20,000 acres would feel like but if we got to learnt to ride whilst there we would try to check a few 50 say out!! MT: I remember meeting up with a character who grew up on a "small family farm" (as he put it!) of 23,000 acres. He used to talk about going to high school (5th and 6th form, I think, in the British system) where they would have rodeos instead of track and field. He also used to ride into school each day. I don't *think* that is still going on, but it certainly gave me a new outlook on what I had thought was commercialism there. VSW: Not sure I catch your drift properly - perhaps I'm not explaining myself very well... I certainly would be overwhelmed by 20,000+ acres... I did mean only 50 acres would seem HUGE to me! While the British have a tradition of vacationing on “working farms”1, these are, however, radically different from Albertan farms and ranches. In UK farm vacation marketing, these products are tied to “getting back to nature” and food (especially “fresh” and “organic”). Given that Canada markets “nature” in a totally different way, our marketing of farm/ranch vacations will appear more contrived; i.e. it goes against the UK cultural expectation. This can be counteracted, in part, by simple statements such as “We have a long tradition of…”, and by providing historical context. 1 See http://www.cartwheel.org.uk/ for an example of how this is marketed in the UK. Page 214 14.9 Alberta Itineraries The vast majority of itineraries suggested (over 95%) were combined Alberta-BC itineraries along the Calgary-Banff-Lake Louise-Vancouver corridor. The primary blockage is ignorance The main Alberta site was cool and nicely laid out but should have had an overview of Alberta on the front page. If you're not that familiar with the country you need to check whether Alberta is a state or a city and what cities it contains. Never assume we know anything is the best place to start. Once in though it's got lots of info. As noted earlier, ignorance amongst the target is one of the core problems in marketing to the UK. On the whole, they know next to nothing of our history, geography, politics or culture. While they perceive us as “friendly” and “polite”, they are intimidated by our size and, sub-consciously, by their own ignorance. They are not, however, stupid and, if given an incentive, will certainly spend the time to do some research. In particular, they react very well to “Did you know that…?” type questions as a spur, and these types of questions can be used a) to entice them deeper into the Alberta web sites and b) to differentiate and disassociate the “cowboy” image from the American Wild West theme. In particular, it is important to get rid of the “Wild” modifier, which they tend to subconsciously associate with American, Lawless, uncivilized, etc., and replace it with “Civilized”. Page 215 14.10 Ontario Ontario has two main iconic destinations: Toronto and Niagara Falls. These two tend to dominate the perceptions of European travelers. One of the most interesting findings is that for respondents who had not been to Canada before, Ontario was viewed primarily as a summer destination. While this perception plays out differently between all three countries in particulars, it is held in common amongst them all. For UK participants, there is an awareness of Toronto as a clean, cosmopolitan city but, with the exception of the CN Tower, very little specific knowledge. Niagara Falls is also recognized by UK travelers as a “must see” site. Knowledge of other areas of the province is “spotty” and relies usually on word of mouth information and, to a lesser degree, on personal research. The Niagara wine country is also recognized, probably due to the increased awareness of Ontario VQA wines in the UK, but this awareness is separated from knowledge of the geography. Initial reactions by participants to the Prince Edward County site showed that they had no awareness of it at all, although many expressed a lively interest in it after viewing the site. Product Discussion One fairly consistent comment was that Canada, and Ontario, do not market themselves as a summer destination and, given all the summer activities, this is a mistake. I don’t think Canada promotes their summers enough which makes people think that its winter all year around. Well I can truly believe that comment about the British guys because not only that people who have never been think its winter all year round the Canadian brochures promote the same. Canada would greatly benefit if they advertised their warm summers in a similar fashion to Florida by showing people in summer wear, drinking popular Canadian beers in bars (and not hidden by a brown paper bag), sitting outside restaurants having drinks and showing some hip trendy spots. Page 216 14.10 Ontario Most of the respondents who had not been to Canada before perceived Ontario in a much more summer oriented mode, despite the visits to http://www.bluemountain.ca/. This suggests that marketing of Summer/Fall oriented products has a good potential with the UK public. In particular, these products should be linked with existing icons such as Toronto, Niagara Falls, and the Niagara wine industry. In addition, there is ample interest in summer Nature visits / trips of both a nature viewing type, hiking tours and, to a lesser degree, nature “explorations”. This last category needs some expansion, since it conflates interest with Aboriginal tourism products with environmental issues and previous UK cultural icons of Canada such as Grey Owl. Put simply, the British have an older “myth” of Canada being closer to nature that the UK. This myth, which is pretty much in their cultural sub-conscious by now, still influences how they perceive our interactions with nature and evokes a longing in them to experience it for themselves. The archetype of this process was Grey Owl, a British man (Archie Belany) who came to Canada and managed to pass for an Ojibwa, while publishing books and articles in the late 1920’s and 1930’s (d. 1938). He was portrayed by Pierce Brosnan in the 1999 film Grey Owl. The interest in this type of nature tour product has not abated. Now this really would interest the kids, exploring Chapleau Crown Game Preserve by CANOE and try to spot most of the animal habitat (we would probably stay here the longest, a few days). Our daughter loves Winnie the Pooh, so we would then have to drive to Pukaskwa National Park. Then off to more canoeing at Quetico Provincial Park, the kids would love it. Head to Northern Ontario, to see the coast near Hudson Bay. Hopefully see polar bears, take a boat trip, stay in remote lodges / hotels in beautiul locations - i am intrigued by the place called Moose Factory, with an ecotourism lodge called Cree Village - about as away from it all as you can get. You reach it by helicopter! Page 217 14.10 Ontario As with other parts of Canada, the general perception is still one of “Civilized Nature”. … one of the liveliest, upfront cities in Canada (Toronto) contrasted with remote stays in pristine wilderness. At the same time, there is really no perception of the size of the country – one person casually suggested that a week long hike around Lake Superior would be enjoyable! The question of distance is crucial for the UK respondents as is the question of safety. Many respondents talked about hiking tours but, with no real feel for the distances involved, grossly underestimated the time required. All who expressed an interest in hiking tours also expressed a very strong interest in hiking planners and information on equipment rentals. Most people listed Toronto as their start point, followed by visits to Niagara Falls, “nature” (usually Northern Ontario or the central lakes district), and then back to Toronto, Ottawa or Montreal for their exit. A number of respondents expressed an interest in renting a car and just “touring” – seeing what was available and around. This suggests the possibility of marketing “touring” vacations (flight, 2-3 city visit, car rental) and the production of “road touring” guides. Page 218 14.10 Ontario Consider the following example of an itinerary: Flying to Toronto (Summer; 1 day) Drive to Blue Mountain Resort (3 days) ¾ rock climbing ¾ lazing around the beach Drive to the Sandbanks (3 days) ¾ wind surfing ¾ kayaking ¾ jet skiing ¾ scuba diving Toronto (3 days) ¾ educational experiences ¾ Casa Loma ¾ CN Tower Drive to Montreal (3 days) ¾ Tour (bus or walking) of Old Montreal ¾ Jean- Drapeau Park Drive to Ottawa (5 days) ¾ Rideau Falls ¾ Parliament Hill ¾ The Market Fly to London A second opportunity in the “road touring” category is suggested from the positive reactions to the Prince Edward Country products – specifically, a road tour product specialized for the Toronto – Kingston - Ottawa corridor, going along the lake and St. Lawrence to Prescott or Cornwall. Page 219 14.10 Ontario Fly to Toronto (3 days) ¾ Shopping ¾ CN Tower ¾ Shows Drive to Niagara Falls (2 days) ¾ The Falls ¾ Niagara on the Lake ¾ Niagara wine region Drive along Lake Ontario to Kingston (2-4 days) ¾ Prince Edward County ¾ The Sandbanks ¾ 1000 Islands Drive to Ottawa (2-4 days) ¾ Parliament Hill ¾ Museums Fly home Other possible itineraries were more “nature” focused: Fly to Toronto (2 days) ¾ CN tower ¾ restaurants, bars and nightlife Drive to Niagara Falls 1-2 days) Drive to Lake Superior Provincial Park (1 day) Either Drive/Fly to Northern Ontario, to see the coast near Hudson Bay. ¾ Polar bears ¾ Boat trip ¾ Stay in remote lodges / hotels (e.g. Moose Factory, with an eco-tourism lodge called Cree Village) Or Drive to the Agawa Canyon Tour train Explore the Chapleau Crown Game Preserve by canoe Drive to Pukaskwa National Park. Drive to Quetico Provincial Park (Canoeing, nature/animal watching at all) Return to Toronto and fly out Page 220 14.11 Manitoba In general, the reaction of respondents who had been to Canada was moderately positive but, as one noted, I don't wish to be negative, but I feel that the truth is more valuable to you in these types of situations. I know very little about Manitoba and having checked out the websites provided, I didn't really find anything to tempt me to go. As per a lot of Canada it seems to be exceedingly beautiful but that seems to be about it and at this particular time in my life I can't see a situation where I'd use my valuable vacation time to go there. If I had several weeks or months to tour Canada, sure. But given that I have to work most of the year at the moment, it's kind of a no-go. This negative attitude was almost universal amongst the respondents who hadn’t already visited Canada. I'm not the sort of tourist who wants 'educating' on my holidays - I can learn anytime - holidays are for fun! So anything that's a bit, sciency, or anthropological or historical is a complete turn off for me. I definitely don't want 'custom programmes', 'human rights museums', 'aboriginal festivals', 'bird reserves', etc. I'm not into clinical spas either, or provincial theatre - what a load of old tat all of that was. The negative attitude seems to primarily stem from reactions to the websites, since the travelmanitoba.com site was listed as actually enhancing people’s perception of Manitoba and their desire to go there (especially the Top Ten page). The differing reactions imply that which the official site may work, and work well, the specific sites counter the official message to some degree. Product Discussion Of Polar Bears In general, most respondents were mediocre to the proposed polar bear trips for a variety of reasons (time, cost, ethics, etc.). Even where the response was positive, it was only for a limited trip (~3 days maximum), and the responses to the Via Rail bear trip bore this out. At best, the bears are a limited product that, because of the season, most travelers would prefer to see incorporated with ski or other winter vacations. The bottom line is that polar bear excursions will be a niche product in the UK. Page 221 14.11 Manitoba Of Whales The response to whale watching was much more positive amongst respondents, even though, as one respondent noted: Whale watching is not really the biggest deal any more, I've been to many places where you can go whale watching and I wouldn't really go somewhere just because you could whale watch, regardless of what it was packaged with... It does, however, have an ad-on appeal to many respondents who were thinking of road trip / camping in Manitoba. The rail option was, in general, received poorly. It is, however, interesting to note that the responses to both the bears and the whales were more positive amongst the respondents who had not previously been to Canada. This suggests that both have a “grab” factor to focus potential thoughts of a Manitoba vacation amongst UK travelers who have not been to Canada before hand. General While the main travelmanitoba.com site enhanced the view of respondents, one said it was “exactly what I was looking for”, the same was not true of the other sites listed. This implies that greater care is needed in integrating the web presentation of tourist products in Manitoba. Furthermore, the integrated message portrayed on the main site is being undercut by the other sites, presenting an overall image of “so what?”. As several respondents noted, talking about the other sites: I have looked through the links that you have provided and to be honest there is not too much that grabs me or shouts out to me about Manitoba. Don't get me wrong it looks a beautiful place, but it's not as exciting as BC or Alberta. It’s the location and the site information is quite boring, unless your a naturalist. It doesn’t seem to grab me like the other provinces of Canada have. Page 222 14.11 Manitoba Given the UK love of exploring culture and heritage, as well as “Civilized Nature”, and the absolute lack of an iconic destination in Manitoba, we would recommend that a concerted effort be made to produce such an icon. While the discovery of what could be marketed as an icon in the UK market was beyond the scope of the current research, certain potentials definitely exist in Manitoba. One possibility relies on the fact that Manitoba is home to some of the finest festivals in the world – the Winnipeg Folk Festival and the Winnipeg Fringe Theatre Festival come to mind as exemplars. A strong viral marketing and “buzz” campaign in the UK music and theatre communities could well pay of with something like a “See the Best, then take a Rest” campaign. Itineraries Many of the UK respondents when asked about possible itineraries felt that Manitoba would be good for a “road trip”. Consider the following suggested itinerary: Fly to Winnipeg and rent Winnebago Travel to Portage La Prairie (2 nights) Travel to Brandon (3 nights) Travel to Minnedosa (1 night) Travel to The Pas (6 days) ¾ Clearwater park ¾ Swimming, canoeing Return to Winnipeg (2 nights) Fly home Note: “Because they speak English in Canada we would ask people we met where are the best places as well as doing our homework before we leave.” Page 223 14.12 The Atlantic Provinces Overall, the reactions of respondents were very good to the opportunities in the Atlantic Provinces, albeit skewed towards Nova Scotia. OK now you are talking, museums and art galleries, Canada festivals, Historic Sites, Golf, shopping, beaches WOW. The general “plan” would be flying into Halifax (or Boston/Maine), staying in Halifax a few days and then car touring. The sole “complaint” about the site was that it lacked easy access to flight information. One of the key advantages identified was that Halifax was close enough to allow for a city trip (~3-4 days). Other core advantages to the region as a whole included “seafood vacations”, a longer sense of history and extensive cultural opportunities in both an urban setting and a semi-rural setting. As a note, the entire seaboard area from Labrador to Nova Scotia plays a part in English, Irish and Welsh mythography (e.g. The Voyage of St. Brendan the Navigator). In some ways, the Atlantic provinces were the “edge of the world” for pre-Columbian Europe, and this can be used as the basis for the development of tourist products throughout the region. In addition, there are strong historical and emotional links between the UK (especially Scotland) and Nova Scotia. While generally unarticulated, these linkages show through in some comments: I think getting a sense of history from these places that were the furthest flung destinations for sailors in the last few centuries. On the whole, respondents who had not visited Canada before were more enthusiastic than those who had visited Canada. This is probably due to the lack of an iconic destination – something of a surprise given the general iconic status of Anne of Green Gables (who was not even mentioned once!) and the area being the home of the earliest European settlements in North America. Page 224 14.12 The Atlantic Provinces Product Discussion The Atlantic Provinces have several fantastic opportunities, primarily in the area of product integration and marketing. These centre around History and Culture, Food and Wine, and Nature. History and Culture Several potential iconic destinations are available in this area ranging from the Viking Vineland settlements (limited general appeal, but the oldest European settlements in the New World do have a certain iconic status in Europe), to the early European settlements throughout the region (e.g. Louisburg). Certain areas in the Atlantic Provinces, Halifax in particular, also have an extensive music and arts scene that could also be promoted as part of a “city trip” package. Food and Wine “Seafood Tour” products may well become very popular components of vacations over and above their potential draw in the sense of “fine dining”. The “Taste of Nova Scotia” Campaign1 is an example of the start of such a campaign, but it is important to note that the canadaeastcoast.com site did not link through to either that site or the main listing of vineyards and wineries. With an almost 400 year old tradition of food and winemaking in the province, such a lack of linking is a major mistake. One possible product would be a modular “Seafood: start to finish” product going from the catch, through the cooking to the dining. While this would, in all probability, only attract seafood aficionados and chefs, it would create a solid seafood “buzz” placing the region in the top of mind for seafood. It could also serve as excellent advertising in fine dining magazines. Cape Breton also has an extremely good potential draw as a “road tour” destination with a focus on “pub culture”, music and food given the strong links with Scotland. This potential is enhanced by the folk music tradition and would resonate strongly with UK cultural practices. The Annapolis Valley Wineries also offer an excellent potential for short trip tour products, if marketed properly (i.e. as part of a city trip to Halifax). 1 http://www.tasteofnovascotia.com/ Page 225 14.12 The Atlantic Provinces Nature Certain images of nature (e.g. icebergs calving) as partially iconic and could definitely be used to create / enhance the marketing of iceberg viewing.1 The imagery of “Nature” held by UK respondents regarding the Atlantic Provinces is quite different from that of the rest of Canada. In particular, they focus on shore lines, coves, icebergs, etc. – basically maritime imagery with a “frontier” or “boundary” motif. I would then pick up a car for a 5-day driving tour of the south shore route to go see Mahone Bay and Lunenburg and going past Yarmouth on the Evangeline Trail. We would then walk along the ocean floor at Fundy Bay if the timing of the tide was right and then go for a hike in the local area. Well there is certainly a sense of familiarity and a kind of rugged romance to this part of Canada. Newfoundland, Nova Scotia and the like are very evocative place names with a history that you would be interesting to view. I would fly into Halifax and from there make sure I took in the coastal drives (stopping a lot along the way to explore) the Cabot trail in Nova Scotia looks interesting. The imagery of “Nature” resonates with the West coast of the UK (except for Newfoundland and Labrador) and creates a sense of “familiarity” and historical connection with the “frontier that was”. Given that the amenities available on the coast are much better than those available in the UK, there is an excellent potential to develop the “sea cottage” rental business that has been popular in the UK for several centuries. 1 NB: Looking through the Newfoundland and Labrador tourism website is somewhat frustrating in that there is no simple, easily found link to booking an iceberg tour. Page 226 14.12 The Atlantic Provinces On the Website (canadaeastcoast.com) While the response was generally positive to the site initially, there were some particular problems noted. I didn't find much factual information on this website - how did you all know you fly into Halifax? So it’s hard to give an itinerary as I couldn't find the facts. I find the web site could be more informative and would appreciate if I could speak to the Canadian Tourist Board and take advice as to a possible itinerary. Most of the information respondents were looking for was quite readily available on the provincial tourism sites, and we would strongly recommend that there be a very strong effort to increase links between this website and the appropriate provincial sites in the text. Page 227 14.12 The Atlantic Provinces Itineraries Several different itinerary suggestions appeared ranging from a “shotgun” approach Fly to Halifax (2-3 days) Drive through Nova Scotia (2-3 days) ¾ The fossil and Gem hunt ¾ Highlands Nature Park ¾ The Cabot Trail Transfer to Prince Edward Island (2 days) ¾ Golf ¾ “Peace” ¾ Beaches ¾ Shellfish/Lobster Transfer to New Brunswick (2-3 days) Transfer to Newfoundland (2-3 days) Fly home Through to more in-depth itineraries. Fly into Halifax (3 - 5 days) ¾ Culture and night life ¾ Food “Explore” Nova Scotia by car (3-5 days) Fly to Newfoundland (3-5 days) ¾ Puffins, Whales, Icebergs ¾ Northern Lights ¾ Side trip to Torngat Mountains National Park (2 days) Fly home For the UK travelers, a key to their itineraries is the ability to “explore”, usually in the form of a “road trip”. Page 228 14.13 Forum Summary Canada has an historical connection with the UK, which has both been beneficial and troublesome. In some ways, the UK still view us a “the colonies” and, baring a few iconic destinations, discount us as an “exotic” destination. This is probably one of the reason why we place so high in the “Dream” category, but poorly in the “actual” category.1 One of the key findings of this research is the vast level of ignorance of the UK respondents about Canada. In some cases, this plays to our advantage (e.g. “polite”, “caring”, “authentic”), but in some it doesn’t (e.g. “winter nation”, “vast”). This ignorance is especially important when we consider how to develop new products because, in most cases, they actually are unaware of existing products – they frequently substitute colonial stereotypes for actual knowledge; knowledge that they only gain by actually coming here. For our UK respondents, the best tool for selling Canada is experiencing Canada, with friend referrals coming second. This has a number of implications for both our tourism strategy and for our products. First of all, the CTC’s Canada: Keep Exploring campaign is exactly right for the UK market since it tags into the UK stereotype of us as a colonial frontier. But, in order to get them to keep exploring, we have to get them over here in the first place. Given their general ignorance of Canada, this means that we have to influence what Sociologists call their “reference group” (family, friends, co-workers, fellow hobbyists and enthusiasts, etc.). This implies that we need to create a series of viral marketing campaigns to sell our existing tourism products, while creating new ones in line with the desires of these reference groups. 1 It should also be noted that for at least several respondents, Canada was viewed as an excellent place to immigrate to as well as vacation in. Page 229 Section 15: The Travel Trade Page 230 15.1 U.K. Travel Trade 1. Perceived Market Trends a) Destination Trends The U.K. travel trade do not see any major shifting in long-haul destinations from their vantage points as individual retailers and wholesalers. Long-haul travel appears to be growing globally to all destinations in their view. However, noteworthy factors: Difficulties in dealing with homeland security may be negatively affecting U.S. travel. “Everyone is targeting the U.K.” in their view, including newly aggressive players – India, China, Brazil, South Africa. The U.S., New Zealand, South Africa and Australia have “huge” budgets. The current New Zealand (“100% Pure Natural”) and the Australian campaign (“Where the Bloody Hell Are You?”) have received high exposure and positive reviews. b) Changing Needs Greater use of the internet and the availability of detailed information on destinations appear to be producing a more confident traveller: More online bookings More aware of what they want More independent More self-drives More demanding of service and standards of accommodation. Older travellers (50+) want to be more active. The traditional “lie around” beach vacation is giving way to more active holidays Page 231 15.1 c) U.K. Travel Trade Planning/Booking Trends Travellers are using the web for planning and destination decision making. Clearly more direct booking online of air, hotels, car rental and even packages. Virtually all agents surveyed said that travellers to Canada had all made up their mind to go to Canada prior to visiting the agent. Consequently, today the agent has little influence on selling Canada as a destination. However, this can be influential in promoting and marketing specific side trips, activities and other interesting choices. Hence, for peripheral regions and attractions (beyond the core itinerary) they can be highly important. d) Product/Packaging Trends Existing packages tend to be narrow in range and limited in the trade’s view and they see little evolvement in package designs. Agents are involved with travellers who want customized, more complex itineraries not easily purchased on the net. e) Advertising/Promotion Trends Movies and television are major influencers (e.g. Lord of the Rings for New Zealand, soccer, rugby, cricket tournaments for Australia, film and television shows for the U.S.) New Zealand and Australia advertising campaign have received high recall and reviews, as noted earlier. f) Forecast For The Next Five Years More internet booking, less sales for agents. Survivors will focus more on complex, customized travel. Page 232 15.1 U.K. Travel Trade 2. Canada’s Image a) Canada’s Competition Agents have a difficult time defining who Canada’s competitors are because the same clients go both to Europe and to a wide range of long-haul destinations, depending on the circumstances. However, among long-haul alternatives, common perceptions are: New Zealand – similar product (nature), Commonwealth country, English spoken. America – especially in fall and winter (e.g., pre-Christmas shopping, skiing). South Africa b) Canada’s Strengths Predictably, Canada’s natural icons are the major selling point – particularly the Rockies, the Rocky Mountaineer train, and the Vancouver area. Other key strengths: English speaking Hospitable people Easy to get to with direct flights and relatively short flying times Quality of product (e.g., accommodation excellent) Exchange rate is favourable Canada not “super expensive” Toronto a viable alternative for a short city break Toronto pre-Christmas can be viable alternative to New York for shopping Can be in a city (e.g. Vancouver) and in nature on the same day More viable for 2 weeks than New Zealand (often 6 weeks) Page 233 15.1 c) U.K. Travel Trade Canada’s Weaknesses A common perception is that Canada is cold (note: CTC website should provide current temperatures in major locations to demonstrate reality). Canada’s image is too focused on nature and does not balance the image with reassurance of the comforts of infrastructure (discussed later). Packages available are quite limited – focusing on traditional, standard itineraries. Given the importance of popular films, Alberta, for example, missed an opportunity to inform the market that the highly appealing scenery in “Brokeback Mountain” was in fact in Alberta. d) Ideal Brand Image Most in the trade believe that Canada’s brand image must evolve beyond simply depicting nature and needs to reassure travellers that also present are the comforts and security of “infrastructure”. This can include: Showing people enjoying themselves in bars, clubs and restaurants, having a good time – not necessarily cities (that is what they came from) but rather civilized amenities with scenery in the background. Spa resorts Shopping Good food The nature side can be enhanced with soft adventure and other experiential opportunities, but always featuring amenities close by to minimize the “fear” factor of wilderness. For the family market, the image can take a different twist. Agents believe there is a real opportunity to market Canada to families, positioning Canada as: A “natural Disneyland” An opportunity to expose children to whales, canoeing, seeing wildlife, ranches, horseback riding, resorts with hiking, kayaking, etc But, taking great care to reassure parents that the nature based experiences are safe Page 234 15.1 U.K. Travel Trade 3. Travel Products a) Common Itineraries i) B.C./Rockies This is by far the most common destination for Brits, according to the trade. The itinerary is typically: 2 weeks Includes Vancouver area, up to the Rockies Rocky Mountaineer rail excursion from Vancouver to Calgary is highly appealing (clearly well marketed in the UK). Examples of memorable moments: “Vancouver is a “brilliant” city to live in” “Going onto (Columbia Ice Fields) glacier” ii) Toronto and Niagara Falls Toronto is viewed as quite accessible—a medium haul flight Often a long weekend city break Becoming popular as a pre-Christmas shopping opportunity (instead of New York). iii) Alaskan Cruise Likely including a visit to Vancouver area Overall, there are a number of other relevant observations. Packages do not have to include too many extra activities, since clients are often reluctant to pay in advance. They would rather make the decision while in Canada and book locally (e.g. heli tours over Niagara Falls). Fly-drive is very popular Outdoor activity preferences tend to be relatively passive – walking, fishing, Niagara Falls boat ride, wildlife viewing from bus or highway. Page 235 15.1 b) U.K. Travel Trade Atlantic Canada Atlantic Canada has relatively low interest as a tourist destination from the U.K. One issue is the perceived similarities with the U.K. especially the Devin and Cornwall regions and Scotland. Agents say that the region needs to focus on its uniqueness and its strengths – for example: c) Proximity--relative short and direct flights into region (e.g. Halifax) Lighthouses Whale watching Iceberg viewing Put tourists into light house or unique type of accommodation Unique dancing Product Opportunities Most claim that their existing markets are older (e.g., 40+, 50+, 55+, 60+) However, they see an opportunity with the family markets, given the educational and entertainment opportunities in Canada’s natural environment, discussed earlier. Many also believe that selling Toronto during November and December preChristmas for extended weekend trips to shop has real potential. Toronto can be positioned as a viable alternative to New York with the advantage of avoided home security concerns. Current packages are not considered to be very interesting or inventive. In the view of agents, tour operators are offering only “tried and true” packages that they can market worldwide. The trade would like to see more focus on unique, interesting experiences – for example: First nations Dinosaurs fossil site – Alberta Tremendous fishing Wildlife viewing Extreme sports for younger travellers (e.g., white water rafting, heli skiing). Page 236 15.1 U.K. Travel Trade 4. Repositioning Canada Canada’s core selling proposition is clearly the opportunity to get close to world class nature. However, to strengthen the appeal of Canada to UK travellers requires some modification. Intimidating nature – while a key appeal of Canada is to see and experience its nature, the trade reminds us that it can be very intimidating to prospective travellers. Consequently, presenting nature products must be done very carefully. “It must be showcased in a way to minimize fears, especially for 50+ travellers” “Remember most have never been in a kayak before” “A mountain hike sounds scary” “The notion of meeting up with a bear is very intimidating” Balancing the image– while nature gets Canada on the priority list and is its principle drawing card, prospects need to be reminded of the comforts of infrastructure are also present. “After seeing the lakes, can I go and relax in a pub with my friends, or will I end up sitting there with a bear?” It is critical then to communicate that British travellers can literally experience authentic nature, yet have the other foot firmly planted in the infrastructure (not necessarily a city. It could be a resort). Weather – it is perceived to be cold November to April. Given the popularity of Vancouver, actual temperatures should be shown on the website to reassure travellers. Page 237 15.1 U.K. Travel Trade 5. Trade Support a) Improving Marketing Suggestions include: Big opportunity to target age 60+, now not a CTC target. Target families – positioning Canada as a “Natural Disneyland” Promote Toronto as an extended weekend trip for shopping prior to Christmas as an alternative to New York. Small resorts should form regional partnerships to promote their area. Come in and chat with us. Pitch the area as one region to be added on to a traditional itinerary (e.g., Georgia Triangle as add-on to Toronto/Niagara Falls visit). (Remember that while agents may no longer be influencers in selling Canada as a destination, they can be very influential in selling add-ons or in recommending itinerary adjustments.) Regions like Atlantic Canada should attend trade shows, get operators involved. Also, approach specialty niche markets directly on the internet (e.g., fishing, bird watching societies, etc.). b) CTC Activity Some agencies, especially those in the Canadian specialist program, are well aware of the CTC and find them very helpful: Help with agency promotional evenings Listed on their website as a specialist Really good training program Staff (“Roger”) always there to answer questions Better support than Australia or New Zealand provide They give us what we ask for (in terms of materials) However, if they are not part of the specialist programme, there is a likelihood that the agency has little or no contact with the CTC. Page 238 15.1 c) U.K. Travel Trade Improving CTC Service Come out and do more Canada evenings More trade show involvement More information on each region Especially for the family market, suggestions on or direction in how to find and sell product that could appeal to parents wanting an educational experience for their children: A canoe trip combined with an explanation of how canoes are made Maple syrup making demos More information on home stays and how people can experience the Canadian way of life 6. Canadian Receptives a) Product Needs • As in other countries, the receptives working with the UK market reconfirm that the UK traveller is looking for an experiential product, experiences that create memorable moments that can be shared with friends and family long after the trip ends. • For example, in Atlantic Canada, which many Brits and agents say suffers for a sameness with parts of Britain, the focus must be on unique and interesting experiences and on opportunities to get involved—with such activities as: o o o o o o o o Ice berg viewing Whale watching Staying in lighthouses The Acadian culture and history The Scottish connection Winery tours Gastronomy Educational touring Page 239 15.1 U.K. Travel Trade b) Communication • The constant theme played back by the trade and consumers in the UK comes out again here: o The traveller wants the comforts of an urban setting as well as getting out into nature o The real appeal of Canadian nature is not only that it is close by, but also that it is authentic. o You can go on real hikes, have real exposure to nature • c) As well, the friendly nature of Canadian people is a highly saleable asset. Trade Assistance • As for other countries, Canadian receptives have a wide range of interesting product available, but tour operators are unwilling to pick them up. Unless it is proven that demand exists, they are reluctant to devote precious space in their brochures to them. • Many would like the CTC to take on the challenge of pushing operators to pick up new product. • The focus in their view should be packages that include the essential product (e.g. a short stay in the cities), then building in exciting lifestyle and nature experience add-ons. • Again, they remind us that the cities should be positioned more as gateways to Canadian experiences, not destinations in themselves. • Other remarks: o The CTC and provincial/ city partners need to work together to create more synergy. o They want a closer relationship with the CTC o Some criticism of events like Trafalgar Square Canada days, believing that CTC funds could be better directed to trade and its product positioning. Page 240 15.1 U.K. Travel Trade Travel Trade Summary The key piece of learning from the UK travel trade interviews is that, according to agents, virtually all prospective visitors to Canada that contact them have already made up their mind to visit Canada prior to engaging them. In other words, while the agent may be influential in choosing the specific itinerary within Canada, they are not driving the decision to choose Canada. The internet is the new powerful influencer in this behavioural shift. Consumers are now empowered with a source of knowledge that they never had before. The implication for the CTC is that the travel trade becomes less important as a route to driving travel to Canada. The focus must now shift even more to promoting Canada direct to the consumer—especially via the net. On the product side. Agents strongly agree that there is not enough new product on the market for Canada, yet there are endless opportunities to expand the product offering— the countless interesting and unique experiences beyond the well known attractions (e.g. The Rockies, The Rocky Mountaineer train, Niagara Falls, Vancouver, Toronto, etc). These include unique nature based attractions as well as urban focused. Receptives confirm that clients are looking for more experiential product today. However, one of the major barriers to broadening the product offering lies with the operators who are reluctant to experiment with new packages unless there is proven demand in advance. The chart on the next page illustrates the Old Model of decision making. Under the old model of product distribution, the consumer purchased what the travel agent offered which, in most cases, was what the tour operators put together in their brochures. The narrowness of their offering restricts consumer appeal because many of the most exciting vacation ideas never make it to market. Receptives confirm that they have plenty of ideas, but there is real resistant by operators to pick up those product ideas. Page 241 15.1 U.K. Travel Trade The trend is now toward the consumer going directly to the internet (among other sources like past visitors) for ideas, less reliant on tour operator offerings. This reinforces how important it is for the Partners to develop their websites and ensure that the right kind of product is available on the internet. Page 242 Appendix Page 243 Questionnaire Page 244 Questionnaire Page 245 Questionnaire Page 246 Questionnaire Page 247 Questionnaire Page 248 Questionnaire Page 249 Questionnaire Page 250 Questionnaire Page 251 Questionnaire Page 252 Questionnaire Page 253 Questionnaire Page 254 Travel Trade Interview Guide Page 255 Travel Trade Interview Guide Page 256 Travel Trade Interview Guide Page 257 Travel Trade Interview Guide Page 258 Travel Trade Interview Guide Page 259 European Discussion Guide – Prospective Visitors Page 260 European Discussion Guide – Prospective Visitors Page 261 European Discussion Guide – Prospective Visitors Page 262 European Discussion Guide – Prospective Visitors Page 263 European Discussion Guide – Recent Visitors Page 264 European Discussion Guide – Recent Visitors Page 265 European Discussion Guide – Recent Visitors Page 266 European Discussion Guide – Recent Visitors Page 267 Recruiting Specs Page 268 Recruiting Specs Page 269 European Forums Page 270 European Forums Page 271
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